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YEAR:2012-2013 SUBMITED BY:

Prajapati Alpesh G. Senma Sanjay D. Kathodi Rohit L. Makwana Nitin T. Mistry Nniyati M. Panchal Bhavik D. Panchal Ronak A. Parekh Ritu G. Patel Foram A. Patel Jainita B. Patel Payal N. Patel Riya B. Solanki Mukesh M. 3042 3055 3098 3101 3105 3108 3109 3112 3121 3122 3216 3128 3149

SUBMITED TO:
B.W.T.INSTITUTE OF BUSINESS ADMINISTRATION (HKBBA) AHMEDABAD (Affiliated to the Gujarat University)

PREFACE
The only way to discover the limits of the possible is to go beyond them into the impossible. Arthur c. Clarke

Being the management student and performing small practical even is in itself an experience of responsibility on our head. the project is certainly the best chance to work in the research field and have practical understanding of research. And this exposure has really added a supplement and nourishment to our growing tree of management knowledge just like the fertilizer does to the plants. In view of above, this report has been completed as part of syllabus prescribed for the business administration. This had been made in order to known the impact on general insurance..for this a wide survey of targeted population has been made. this is help us to understand the market potential & consumer awareness about general insurance .we have made questionnaire which helped us to collect primary data as per guideline provided. This data has been verified and carefully analyzed in order to predict this project help us to understand the market potential and consumer awareness about general insurance and we also understood that whether they would like to use general insurance or not. Under this project report, we have tried our best to present an overlook of the organization as well as our understanding about the unit. It is really a golden opportunity for us, as it comes first time in our life knowledge. In our report we have introduced you with our work and extent of our knowledge regarding different concept of marketing and business environment and how we have linked theory with the practical issues of general insurance. Every legend, moreover, contains its residuum of truth. And the root functions of language are to control the universe by describing it. James a. Baldwin

Acknowledgement
while we are of course solely responsible for the content in this report impact of general insurance on people. We want to thank several people for their assistance. from the practical study we have got the experience and improved our knowledge and its provides us guidelines to perform work in actual situation. We have thankful to director of our college prof. Nirav shah and brahmchariwadi trust institute of business administration to providing all the facilities to make this report and for all encouragement firstly we are thankful to the faculty who reviewed this report and provided us with rice guidance PROF. BHAUMIK NAYAK. We are thankful to all those respondents who actively engaged with our research given their precious time to us at home we want to acknowledge the support and patience of our parents during the many hours we spent on working on the report. Finally we thank the Almighty for providing us the great opportunity undertake this value based learning. Here, we cant forget the psychological and financial support provided by our parents during the course of report. Last but not least we are also thankful to our classmate for sharing the information with us.

TABLE OF CONTENT

CHAPTER SR. NO. NO. I II Ch:1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 Ch:2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 Preface

PERTICULAR

PAGE NO 2 3

Acknowledgement RESEARCH METHODOLOGY Research objective Data sources Research design Research approach Contact method Research instrument Sampling plan Data preparation & interpretation Interpritation & tabulation INTRODUCTION Introduction of general ins. History of general ins. Policy of general ins. Process of general ins. Benefits of general ins. Opportunities & challanges Companies of general ins. Components of general ins.

7 8 9 11 12 13 14 15 16 20 20 39 65 85 100 119 134 138

2.9 Ch:3 3.1 3.2 3.3 3.4 Ch.4 4.1 4.2 4.3 Ch:5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 Ch:6 6.1 6.2 6.3

Privatization of general ins. Introduction of Industrial over view ins. Indusry profile PEST Analysis SWOT Anaslysis Indusry compititive structure S.T.P. Segmentation Targeting Positioning MARKET STRTEGIES ANALYSIS Product Price Place promotion People Process Physical evidence Primary data analysis Data analysis Cross tabulation analysis Chi-square analysis

151 175 175 188 190 200 207 207 211 213 215 215 222 225 228 231 234 235 237 237 305 399

III

CONCLUSION

IV

MAJOR FINDING

BIBILIOGRAPHY

VI

APPENDICES questionnaire

Chapter :1 Research Methodology


1.1 Research objective:
Research objective can be define as the purpose of motive behind the research through which the researcher tries to conclude some of the major and minor findings. There are two types of objective in research. a.) Primary objective b.) Secondary objective A.) Primary objective: Our researchs primary objective is to determine the impact of general insurance B.) Secondary objective: Our secondary objective are

1.2: Data sources:


Data can be define as some information regarding particular topic or point. It is some broad information regarding one subject. It can be classified in two categories..

1. primary data: The newly and freshly gathered information which is gathered for very first is known as primary data.

2. secondary data: The secondary data is already exists somewhere and gathered previously for any other purpose. The sources used to gather secondary data is known as secondary data sources. e.g.: from the general insurance we have gathered some information like details of companies, major player in general insurance and various related information of General insurance

1.3 Research design:


Research design is known as framework or blue print of research. Research design can be define as frame work or blue print of research for conducting any kind of marketing research. It specifies the detail of necessary procedure for obtaining the information needed to solve marketing research problems.

exploratory research design conclusive desciptive longitudial causal cross section multipal cross sectional single cross sectional

There are mainly two type of research design. such as Exploratory design Conclusive

1. Exploratory research design: In Exploratory research design, a researcher tries to explore new and untapped areas of the research design project. This kind of research design has its primary object of providing insight or idea in to the problem definition faced by researcher. Here, we have not used this design for the research. 2. Conclusive research design : Conclusive research is done to help the marketing researcher or decision maker determine, evaluation and selecting the best course of action in any given situation. This kind of conclusive research is more formal and structured than exploratory research. in

a) Descriptive design: Descriptive research is research that will describe some characteristics on function of the market and its objectives are detailed awareness of certain market situation. The example of descriptive research is study of market size which determines using power of the consumers. To undertake descriptive study the result must be analyzed on both qualitative and quantitative parameters. Usually surveys, panel discussion or observation research is undertaken to collect secondary and primary information. Here, we have done the research to known the different kind of market share of different company like national ins. company ltd. ,new India assurance company ltd. ,oriental insurance company ltd. ,united India ins. Company ltd. ,icici Lombard ,Bajaj Allianz ,Tata Aig etc..on this base we can known which company is leading in the market among them.

There are two type: 1. Cross sectional: In cross sectional research design research collect information from any given sample of population only once. 2. Longitudinal: In this kind of research design the sample from population is fixed And researcher collects the information from the sample over period of time repeatedly. In this study of brand awareness and market potential of general insurance. We have conducted descriptive research in order to known the awareness and market potential general insurance. b) Causal research design: It type of causal research the major objective of research is to identify cause & affect relationship among different variable involved in research. Product can be define as that is affording to consumer for attention, acquisition and consumption that will satisfy needs and wants.

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1.4 Research approach


After deciding the data source we will get the information from our respondent i.e. consumer. primary data can be collected in following five ways:

1. Observational research: This data can be collected by observing the people when they use different companies. Important points can be noted down while analyzing the using pattern of people. 2. Survey approach: It refers to face direct communication with the respondents. In this predecided questions are asked respondents. It is suited for descriptive research.

3. Focused group approach: In this we have select people who are potential to using general insurance here, we have ask such question regarding different companys their using pattern of different insurance and we have note the important points regarding peoples preferences. 4. Experimental approach: In this we have select two mutually exclusive group of people having similar characteristics, keeping the same controllable factor and same variable in both groups but providing them different to observe the differences in their opinion.

Here we have used survey research approach to known about impact of general insurance with the help of research instrument known as questionnaire.

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1.5 Contact Methods:


In this we decide the methods through which we can contact the respondents to get information. Some of them are follows: 1. Personal interview: It is face to face communication with respondents. By this type of interview we can get the reliable information and we are able to complete the entire question. We also give explanation for the question which is not understood by the respondents. 2. Telephonic interview: In this we have ask some question to respondents on telephone. It is the best method for gathering information quickly and it is less costly also. but in this type of method researcher cannot get reliable, accurate and correct information regarding the objective. 3. Mail questionnaire: A structured questionnaire is prepared and sends to the respondents. the respondents is supposed to fill up the questionnaire and send it back to researcher. This is very time consuming.

4. Online interview: In this type of research we ask the question to respondents online through chat or e mail. Large number of respondents can be covered and it is less costly. For our research we used personal interview for getting reliable information. We met people of various age group to known their using habit, experience and preference related to general insurance.

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1.6 Sampling Plan:


Research uses sampling plan to reduce time and cost of research. Few units from population is selection is selected known as sample.

Sampling plan has following three decision to be made:

A) Sampling unit: If refers to that who should we survey? Researchers select the target audience and do the research. for our research our sampling units are the people who use the general insurance . B) Sample size: It refers to how many people to be survey? Sample size should be optimum to do survey to get more reliable results.

C) Sampling procedure: If refers to how should we choose the respondents? Sampling procedure are of 2 kinds; 1. Probability sampling procedure: it is used where all the units of population is given known and change to be selected as samples. 2. Non-probability sampling procedure: it is used where all the units of population do not get known and equal change to be selected as samples.

In our research we used non probability sampling procedure by convenience sampling as all the units of population do not get known and equal chance to be selected as samples.

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1.7 research Instrument:


Basically there are 3 types of research instrument. They are: Questionnaire, Qualitative measures, Mechanical devices

In our research we have used questionnaire as research instrument. There are 2 types of questionnaire. 1. Structure questionnaire In this type of questionnaire the entire question are in pre decided format and it is asked in a logical sequence. 2. Unstructured questionnaire: In this type of questionnaire question are ready but not asked in logical sequence researcher can ask any question at any time according to his wish as the format is not pre-decided.

There are 2 types of questions: 1. Open ended question: It means where respondents is allowed to answer in his own way by using own words and sentences. Here freedom is provided to respondent to answer.

2. Close ended question: It means where respondent are provided the option and is supposed to answer from those alternatives only. Here freedom is provided to respondent to answer.

For our report we have used structured QUESTIONNAIRE that includes both open ended questions and close ended type of question we used dichotomous question, multiple choice question, and rating scale type of questions.

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1.8 Coding:
1. Coding: In the second stage of our analysis we have marked 1 to 300 numbers on the questionnaires that means our sample size 300 respondents. Each and every question of questionnaire and the option given in each question as also assigned a code. Coding means assigning numbers, symbols, or some character for identification, classification and easiness of data analysis. These numbers and symbols are assigning to each option of close ended. For examples: (Q: 1) occupation (a) Business (b) Profession (c) Service (d) House wife (1) (2) (3) (4)

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1.9 Interpretation and tabulation:


Definition of interpretation: "Interpretation is a communication process, designed to reveal meanings and relationships of our cultural and natural heritage, through involvement with objects, artifacts, landscapes and sites." Definition of tabulation: The systematic and orderly arrangement of facts and figures in columns and rows is called tabulation. The horizontal arrangements are called rows and the vertical arrangements are called columns. In the tabulation stage we as a researcher have used cross tabulation. Cross tabulation We have also tried to articulate the relation between two different entities. e.g. : income of cash less and the time spending at which he or she prefer to use general insurance We have also presented the information collected from our side in the form of pie charts also so that a clear ideas about the respondent and the respondents given by them can be obtained.

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Examples of interpretation: 1. Premium 1 No. of Respondent % 14.33 18.67 22 17.33 10.67 2.67 0.33 14 100 43 2 56 3 66 4 52 5 32 6 8 7 1 Blank 42 total 300

premium
2.67 0.33 10.67 17.33 22 1 14 14.33 18.67 2 3 4 5 6 7

Interpretation: The above mention chart shows that the % of respondents rank premium as a factor they consider while buying health.ins. 1st rank shows that people give first priority to premium and people who give 7 rank . for them it is less important.

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2. Income& cash less benefit:

Income Rank 1 2 3 4 5 6 7 total

<20000

2000030000

3000040000 2 1 11 7 7 7 0 35

>40000

Total

16 23 21 10 14 3 1 102

16 8 14 30 20 10 3 101

4 6 7 11 5 1 0 34

38 38 53 58 46 21 4 272

income & cash less benefit


35 30 25 cash less 20 15 10 5 0 1 2 3 4 income 5 6 7 2 4 1 8 6 16 16 23 21 14 11 20 <20000 14 7 10 7 3 3 1 1 00 10 11 7 7 20000-30000 30000-40000 >40000 5 30

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Interpretation: Form the above chart we can say that maximum people give 4th rank to cash less benefit for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to cash less benefit for buying health ins. There are total 38 people who give 1st rank to . Out of which 16 people income are <20000, 16 people income are 20000 to 30000. And 2 people income are 30000 to 40000. And also in this peoples income more than 40000. There are 38 people who give 2nd rank . Out of which, 23 peoples income are less than 20000. And 8 peoples income are 20000 to 30000.and 7 peoples income are more then 20000. There are total 58 peoples who give 4th rank to the premium for buying health insurance out of which ,3o peoples income are 20000 to 30000. In this maximum peoples incomes are less than 20000 and 1o1 peoples incomes are 20000 to30000 and 34 peoples income are more then 40000. There are total 46 peoples give 5th rank. for buying health ins. Out of which 14 peoples income are less than 20000.

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Chepter:2 Introduction Of Research Area


2.1 INTRODUCTION OF GENERAL INSURANCE:

Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.

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A. What is General Insurance? Insurance other than Life Insurance falls under the category of General Insurance. General Insurance comprises of insurance of property against fire, burglary etc, personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc. B. Who should buy general insurance? Anyone who owns an asset can buy insurance to protect it against losses due to fire or theft and so on. Each one of us can insure our and our dependents health and well being through hospitalisation and personal accident policies. To buy a policy the person should be the one who will bear financial losses if they occur. This is called insurable interest.

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(2.2.1) INTRODUCTION OF HEALTH INSURANCE:


DEFINATION: After life insurance, the second most important insurance is health insurance. As we all are aware of the famous quote : HEALTH IS WEALTH Health insurance, or health cover, is defined in the Registration of Indian Insurance Companies Regulations, 2000, as the effecting ofcontracts which provide sickness benefits or medical, surgical, or hospital expense benefits, whether in patient or out patient, on an indemnity, reimbursement, service, prepaid, hospital or other plans basis, including assured benefits and long term care.

(2.2.2) INTRODUCTION OF FIRE INSURANCE:


Every business has a specific set of requirements. Our range of business products is especially designed to meet your business needs across the commercial spectrum. It is pivotal to get adequate insurance cover for your business to mitigate risk.

Fire Insurance is governed by All India Fire Tariff effective from 31.3.2001 issued by Tariff Advisory Committee, a Statutory Body. It is a commercial policy covering building, offices, machinery, contents and personal belongings of the office. It mitigates the risk of loss of customers arising from fire breakout. The insured should take all possible steps to minimize the loss.

CalculationofFireInsuranceAmount/Premium: The market value of the property is considered while insuring the sum. The amount of premium depends on a number of factors and individual policies of different insurers.

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Fire Insurance Claim Procedure: Individuals/corporate must inform insurer as early as possible, in no case later than 24 hours. Provide relevant information to the surveyor/claim representative appointed by the insurer. The surveyor then analyzes the extent/ value of loss or damage. The claim process takes anywhere between one to three weeks.

(2.2.3) INTRODUTION OF VEHICAL INSURANCE:


Insurance Brokers: worked on the basis they could deal with many different Insurance Companies. Broking had become big business and the development of financial services allowed customers the simplicity of being able to spread their costs with easy payment schemes. With the development of these Brokers and the simplicity in payment schemes, little else was required to make a successful High Street business.On selling their product the insurance brokers could then receive a commission from the Insurance Company for selling the policy. In the early years the process of selling a policy to the man on the street was a simple and no hard sell was used. The customer would walk in off the street and the person behind the counter would simply give them a price for their motor insurance, based on their knowledge and a set of tables supplied to them via the Insurance Companies. If the customer were interested the broker would not force them to buy, they would simply offer them the opportunity of thinking about it. In the early years of High Street Broking the whole procedure was very much based on the personal touch. The High Street Broker became a familiar face that offered his regular customers a friendly service. With the introduction of easy payment schemes, some customers would make more than one trip to the brokers during the year to pay their installments, which enabled the brokers to establish themselves just as local shopkeeper would do. In those days broking was a very manual and paperwork generated process. Although the Broker would give a relatively quick quote, if the customer wished to go ahead with the policy, the broker would then have to complete the paperwork relevant to the Insurance Company quoting the price.The Broker might have 50 or 60 different Insurance Companies to quote from, therefore 50 or 60 different types of proposal forms they would have to learn.

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When the Broker took the money from the customer the paperwork would then be forwarded to the Insurance Company. If there were any mistakes on the paperwork the Insurance Company would have to send it back to the Broker for completion before they could bill the Broker for the money. As you might imagine, some brokers could often make mistakes on the paperwork, knowing full well that it would come back, delaying the process. Insurance in the 1970s: The expansion and growth of the motor insurance market seemed endless until a significant day in 1971. On the 2nd of March 1971 the largest insurer of the day Vehicle and General, owned by Dr Emile Saundra, collapsed overnight. At this time there had been a severe winter and Vehicle and General endured massive claims as a result of the careless regard for the risks they were underwriting from all the High Street Brokers. Suddenly the general public found themselves in an unbelievable situation. All those who had taken policies with the Vehicle and General were now without cover and the High Street Brokers were besieged with business to replace the cancelled policies. You might have expected the customer to take out their frustration on the Broker, but the Broker actually thrived from the situation. There were that many people insured with the Vehicle and General at the time it collapsed, that the 2nd of March became very significant for the insurance world. Customers taking out new policies besieged brokers and for many Years to come March became the busiest period of the year. During the 70 and 80s the High Street Brokers thrived and many household names became well established, for instance, Swintons, who were originally started in Swinton, Manchester.Once again it seemed that nothing would stop the massive growth of Insurance and High Street Broking until the development of the Computer .When Computers appeared of the scene, the likes of Swintons took full advantage of them. They were able to offer the customer a better and quicker service than that of the manually generated quote. The broker did not have to have so much knowledge and they were no able to offer quotes for people who did not live in the close vicinity of the area. The Insurance Companies also loved this because it meant that the mistakes made on the manually generated proposal forms were now little and far between, which meant

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that payment was now being made on time. In offering this to the Insurance Companies the likes of Swintons could now demand better discounts then the other brokers on the High Street. Before long Swintons had spread throughout the Country and became the biggest and best known Broker in Britain. Computers had developed so much that their use had become very relevant. It seemed that the industry had undergone the biggest change that could ever happen, until a further, and bigger revolution occurred in 1985. The Future of Motor Insurance : The Internet has, and is set to cause a revolution within the market place because of its interactive online capabilities. The revolution of the internet will not be as quick as the little red telephone situation in the 80s but its arrival marks the start of future communications and therefore a future in the business world.The Motor Insurance Industry has seen much change over the past 100 years and it is not taking the prospect of the Internet and its implications lightly. Those who do are likely to be making a big mistake. There is clearly a market developing for everyone to get cheaper insurance whether they want the high street, the call centre or the internet it is clearly a matter of choice at the moment and who knows where we might be in the next 100 years.The most popular form of marketing and consumer interest at the present time is the insurance aggregators market place where customers can go onto price comparison sites such as Moneysupermarket, Confused.com, Uswitch and GoCompare. By typing in one question set the consumer is then presented with a variety of insurance prices from which they can then go to that company and purchase their insurance at competitive rates.One thing is for sure and that is that paper advertising and paper media is dying and being replaced with online solutions.

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Maruti Suzuki WagonR - Rs.3,50,880 (Ex-Showroom Price New Delhi ) The WagonR has superior technology, stylish new interiors and a very appealing look as a whole . The Wagon R is available in petrol and CNG variants featuring the 998 cc K series engine. The 998cc three-cylinder K-series engine can generate up to 68 bhp @ 6200rpm. New L-shaped front suspension frame is perfect for the Indian roads and driving conditions and allows dynamic handling and riding comfort. The WagonR features electrically controlled outside rear view mirror, an HVAC unit that offers superior cooling and a music system with AUX-in and 6 band graphic equalizer.

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(2.1.4)INTRODUCTION OF THEFT INSURANCE: Theft insurance: Beware the fine print!: most people who take out an insurance policy don't know the implications of the exclusion clauses. In fact they rarely read them, as they are often in fine print, or illegible. Consequently, they suffer heavily when insurance companies repudiate genuine claims by referring to an exclusionary clause. Take the example of Public Type College, which purchased an electronic plain paper copier for Rs 140,000 and insured it against burglary with the National Insurance Company. During the subsistence of the insurance policy, the copier was stolen. The locks on the shop's door had been opened either with duplicate keys or with a set of keys which the owner had earlier lost. The insurance claim was rejected on the grounds that the theft was not due to burglary or housebreaking, which according to the insurance company meant a forcible and violent entry. A complaint filed before the District Consumer Disputes Redressed Forum culminated in an order to the insurance company to pay Rs 140,000 with 18 per cent interest to the complainant. The Haryana State Commission, on appeal by the insurance company, upheld this decision and the insurance company finally took the matter to the National Commission. Adopting a pragmatic approach, the National Commission observed that "in common parlance burglary is understood as theft." The New India Assurance Company, however, repudiated the claim mainly on the plea that the burglary/theft loss "has arisen out of cyclonic situation" and is not directly relatable to the burglary of the nature covered under the policy. A complaint was filed before the National Commission. By its order dated August 4, 2003 the apex commission while directing the insurance company to pay a compensation of Rs 34.95 lake along with 9 per cent interest observed that "in our view, a wholly wrong meaning is attempted to be given to this clause without appreciating the spirit of the burglary policy with the sole objective of ousting the claim of the insured."

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Recently, the Supreme Court directed insurance companies to redefine the term "burglary" used in insurance policies. In the case under consideration, M/s Harchand Ray Chandra Lal of Delhi had taken out a policy with United India Insurance Company for a sum of Rs 7 lake against burglary and/or housebreaking with effect from September 22, 1991. On July 2, 1992, one of the firm's partners discovered the theft of 197 bags of war from the go down and claimed compensation under the policy. The insurance company rejected the claim saying it was not covered under the policy as the theft was not presented by violence or force. After going into the definition of "burglary and housebreaking" as contained in the policy, the Supreme Court, in its judgment on September 24, 2004 in United India Insurance Co. vs. M/s Harchand Ray Chandra Lal, said: "In absence of violence or force, the insured cannot claim indemnification against the insurance company."\ The court went on to state that "it is true that in common parlance the term "burglary" would mean theft...." but added that "if the element of force or violence is not present then the insured cannot claim compensation." Pursuant to the directive issued by the Supreme Court, the insurance companies will soon have to redefine the burglary clauses. While so doing they must bear in mind that the common man by taking a policy against burglary and housebreaking understands that he has taken a policy against theft and doesn't realise that the incident of theft should involve violence or force.

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(2.1.5) INTRODUCTION OF ACCIDENT INSURANCE:


What is Accidental Insurance? When I bought my first vehicle; my mom advised drive safe these days accidents are increasing hope you would have received similar advice from your parents or given to your kids. Impact from accident can be as small as a scratch to as big as death impact can be temporary or sometime even permanent. Accidental insurance policy covers thisrisk but first check the definition of accident.

Accident or Accidental means a sudden, unforeseen and unexpected event caused by external, violent and visible means (but does not include any illness or disease) which results in physical bodily injury (but does not include mental, nervous or emotional disorders, depression or anxiety). Accidental Insurance also excludes suicides, self injury, armed force operations, war etc. In case of death term plan will help family to cope up with financial hardship but what about an accident where one looses body parts & that impacts his earning abilities. In such situation Accidental Insurance can be very helpful. Features of Accidental Insurance Yearly Contract: Similar to term plan & medical insurance accidental insurance is also yearly contract that you can renew every year. Maximum Insurance: It depends on your income some insurance companies give 60-100 times of your monthly income others give 8 to 10 times of your yearly income. For Non Earning Members: Few insurance companies provide accidental insurance to dependents but have limitation in sum assured. 25% to 50% of the proposers sum insured with maximum limits in rupee terms. Benefits of Accidental Insurance Policy Comprehensive Accidental Insurance policy provides benefits in 4 cases:

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Accidental Death If an insured died due to an accident his nominees will get 100% sum insured. So its very important to have right nominee in any kind of insurance policy whether accidental or life. Permanent Total Disablement Some time a person met with an accident & loses his body parts may not be able to work in future. In case of Permanent total disability 100% sum insured is given to the insured person. It covers:

Loss of both hands or both feet or one hand and one foot Loss of a Limb (hand/foot) and an eye Complete and irrecoverable loss of sight of both eyes Complete and irrecoverable loss of speech & hearing of both ears

Permanent Partial Disablement As the name suggest this benefit is given if someone losses one hand or one leg or even small body part like finger/toe. For this every insurance company have their own tables what they will cover & how much they will pay depends upon the age limit of the person as per policy documents. Temporary total Disablement Sometime it can happen that anyone met with some serious accident but there is no permanent loss. But doctor suggested a complete bed rest of 5 weeks or a complete checkup of any part of the body. This will impact an earning for a small period so in such case accidental insurance can compensate for this income loss. Weekly benefit is normally 1% of your sum assured for maximum 100 weeks. There is also a maximum limit according to your income. Other small benefits There are few other benefits that one can get from insurance company few are priced in the premium & for others you need to pay additional premiums. These can be like emergency ambulance charges, education fund for kids, medical expenses, family transportation, imported medicines etc. You can check more details in below table.

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Accidental insurance Comparison (Premium & Features) How accidental policy premiums are decided Accidental policy premiums do not depend on the age of insured but on his work profile & working conditions. Occupational classification divides people in 3 levels (I have also added premiums from Apollo Munich for each category Sum Assured Rs 25 Lakh) Level 1 (normal risk) this includes people who are in administration functions and work in offices like accountants, bankers, doctors etc. Premium Rs 2600 Level 2 (medium risk) people who are working as labor in the field. Premium Rs 3600 Level 3 (high risk) people who work in mines, circus etc will come in the higher risk category. Premium Rs 5450

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(2.2) HISTORY OF GENERAL INSURANCE:


The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a legacy of British occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of general insurance business. 1957 saw the formation of the General Insurance Council, a wing of the Insurance Associaton of India. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices.

In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then.

In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973.

This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector.The objective was to complement the reforms initiated in the financial sector. The committee submitted its report in 1994 wherein , among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies be allowed to enter by floating Indian companies, preferably a joint venture with Indian partners.

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Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market.

The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders interests.

In December, 2000, the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.

Today there are 24 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 23 life insurance companies operating in the country.

The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the countrys GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country.

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(2.2.1) HISTORY OF HEALTH INSURANCE:


In between the 1950's and 1980's the Health care facilities and personnel increased substantially, but gradually due to the fast population growth, the number of licensed medical practitioners per 10,000 individuals had fallen in the 1980's to 3 per 10,000 from the 1981 level of 4 per 10,000. There were approximately ten hospital beds per 10,000 individuals in 1991. Primary health centers are majorly the cornerstone of the rural health care system.

In the year 1991, India constituted about 22,400 primary health centers, 11200 hospitals, and 27,400 dispensaries. Such facilities were the part of a tiered health care system which funnels more difficult cases into urban hospitals while attempting to provide routine medical care to the vast majority in the countryside. Primary health centers and sub-centers would majorly rely on trained paramedics to meet most of their needs. Indian healthcare industry operates in both of the private and public sectors. The public sectors are healthcare system consists of facilities run by the central and state governments. The facilities are provided freely or at subsidized rates to lower income families in rural and urban areas. However, further the Indian healthcare industry is going through a growth phase due to its healthy economy. As the country's middle class continues to grow this industry's growth will increase. India's ever-growing middle class are able to afford quality healthcare. With such an increased ability to pay for better healthcare, the demand for healthcare services has grown from 4.8 billion in 1991 to $22.8 billion in 2001-2002. Today 50 million Indians are able to afford western medicine and over 150 million have annual incomes of more than 1000 US dollars.

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Indian health care industry growth story is moving ahead neck to neck with the pharmaceutical industry & the software industry of the nation. There has been much done in the health care sector for bringing the improvement like till date, approximately 12% of the scope offered by the industry has been tapped. In the years to come the health care industry in India is reckoned to be the engine of the Indian economy. Today the Health care industry in India is worth $17 billion and there are anticipation & expectation of it to grow by 13% every year. The health care sector consists of health care instruments, health care in the retail market, hospitals enrolled to the hospital networks. etc.

Indian healthcare Industries include systems like ayurveda and homeopathy which are increasingly gaining prominence overseas. Another major area for investment in India is the research industry of the Health Care. In India there is tremendous prospects with a huge talent pool and the rise of biotechnology and bioinformatics. India is a rising and expanding destination for medical tourism. With affordable medical expenses and a sound technology in place goes good with the growing sector which would be bode well for the healthcare industry in India. Total contribution to the economy/ sales Indian Government Expenditure on health care is the highest amongst all the developing countries. The expenses of this industry comprise 5.25% of the GDP. There are even chances that the health care market could experience a hike and attain a figure ranging between $53 to $73 billion five years later. Which would in turn reflect an increase in the gross domestic product to 6.2%. The Indian Health Care Industry earns revenues accounting for 5.2% of gross domestic product.

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Top leading Companies: Private players have made significant investments in setting up of the private hospitals in cities like Mumbai, New Delhi, Chennai and Hyderabad. There is emergence of latest medical technology and have created a competitive environment. The government's share in the healthcare delivery Industry is 20 % while 80 % is in the private sector. The Emergence of corporate hospitals has led to increased professionalism in medical practices and use of hospital management tools.

Apollo Group Fortis Max Wockhardt Piramal Duncan I spat Escorts Ranbaxy Group Company

Employment opportunities: Indian Health Care Industry provides employment opportunities to as many as 4 million people in the health care segment or other related sectors catering to the needs of the medication. India has become one of the favorite for health care treatments which is owing to the vast differences in medical expenses in western countries. Due to the Indian progressive nature of the health care sector several foreign companies are intending to even invest in the country. Health Care jobs are considered to be one among of the most noble career options which is known to be the single largest profession all around the world. There are numerous medical complexities and the need for advanced medical care have necessitated the recruitment of qualified and experienced medical professionals in this field such as doctors, physicians, medical assistants, radiologists, cardiologists, anesthesiologists, and surgeons. There are immense opportunities for Doctors, Resident Doctors, Surgeons, Physicians, and Physical Therapists & Dentists. Vital information on Hospitals are provided by employment agencies who help people register as healthcare workers, Medical recruiting agencies, travel & resettlement agencies and local recruiting.

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India is a country of rich heritage and culture. With its vast geographical expanse, varied climatic conditions, and environment, India has been home to many ancient civilizations and many a ways of life. From different religions, languages, cuisines, climates to societies, India has been amassing and evolving rich diversity and cultural ethos that are unparalleled in other regions and countries. Where there was man, there was a need for medicine. Since India has been cradle to ancient civilizations and early organized settlements; Medicine, as it is today, is but the cumulative knowledge gathered since centuries, along with the evolution of man.

Health is defined as the physical, mental, emotional, spiritual and social wellbeing of an individual. Based on this definition, it is but obvious that health and healthcare were present since the time of man. Historical texts are replete with citing and references of healthcare practices since time immemorial.

History of Indian Insurance Market (Life and Non-life): Insurance in India goes back to the time of the British. The first life insurance company to operate in India -the Oriental Life Insurance Company was established in 1818in Calcutta. It was, however, a British company. The first Indian insurance company, the Bombay Mutual Life Assurance Society starteditsoperations in1871. In 1956.The Indian life insurance industry was made-up of 154 domestic life insurers, 16 foreign life insurers and 75 provident funds, and was still governed by the Insurance Act of 1938.In 1956 all life insurance companies were nationalized, the story of non-life insurance in India is no different. Though

Lloyd.sInsurancepioneered general insurance way back in 1688, the first non-life insurance company to set up shop in India was the Triton Insurance Company of Calcutta. In1907, the first Indian general insurer, the Indian Mercantile Insurance Company started its operations. The New India Assurance Company Ltd. was incorporated in1919.In 1972, the non-life insurance business in the country was nationalized and the GIC (General Insurance Corporation of India) was formed as a holding companywithfoursubsidiaries: The National Insurance, Oriental Insurance, United India Insurance and the New India Assurance Company Ltd.Since then, insurance in India had a protective wall built around it, to keep it a local players. Market. The above companies controlled the insurance industry for nearly30 years or so.

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(2.2.2)HISTORY OF FIRE INSURANCE:


In India, insurance has a deep-rooted history. It finds mention in the writings of Manu ( Manusmrithi ), Yagnavalkya (Dharmasastra ) and Kantilla ( Arthasastra ). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular.

1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies.

In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also

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allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business. An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.

The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a legacy of British occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of general insurance business.

1957 saw the formation of the General Insurance Council, a wing of the Insurance Associaton of India. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices.

In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then.

In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973.

This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and

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more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector.The objective was to complement the reforms initiated in the financial sector. The committee submitted its report in 1994 wherein , among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies be allowed to enter by floating Indian companies, preferably a joint venture with Indian partners. IndiasPublicSectorABriefHistory: In the Indian context, Public Sector or the PSEs primarily constitute the corporate bodies where 51 percent or more equity is held by the government, created under the special acts of legislature, or registered under the Companies Act, 1956. The Indian stake of Public Sector is huge considering the nationalized banks, financial institutions, insurance companies defense enterprises, and transport undertakings. Even the railways and airways are repositories of massive public investment. Two hundred years of colonial rule crushed Indian Industry and exhausted resources. At the point of Independence, the leadership was convinced that political freedom without economic freedom was of little use. However, most of the private entrepreneurs did not have the vision, resources or capability or even the will to undertake heavy investments in core sector industries which have long gestation periods. Besides, given the ideological environment and shortage of supplies, it was only natural for the government not to choose a system controlled by the private enterprise. Initially, the public sector was confined to core and strategic industries. Projects like the Damodar Valley Cooperation, Sindhri Fertilizers and Chemicals, Indian Telephone Industries, Hindustan Machine Tools, steel plants, aircrafts, shipbuilding, Bharat Heavy Electricals, Oil and Natural Gas Commission, and a host of others. The second phase saw mainly three trends, a nationalization spree, and takeover of sick units from the private sector, and entry of the public sector in new fields like, manufacturing consumer goods, consultancy, contracting, and transportation etc. Many foreign firms like Jessop & Co, Braithwaite & Co, Burn & Co etc were nationalized. Several hundred life insurance companies were absorbed into the Life Insurance Corporation. Hundreds of coal mines were transferred to the Coal Mines Authority. Then the public sector entered into fields like making medicine, weaving cloth, and running hotels. During the 1970s and 1980s the growth was phenomenal, wherein it undertook works like providing

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power and potable water, laying roads, constructing townships with basic amenities like schools, markets, hospitals and recreation clubs.

The public sector attracted the best talent in the country. It not only provided jobs to people in different regions, but invariably employed all the displaced people as well. The public sector has to a large extent succeeded in meeting the objectives and laying a strong foundation for the industrial development of the country. It is widely recognized that the public sector management is based on strong systems and processes which is not usually the case with the private sector. At the height of its development, the public sector was less concerned with making profits and more with nation building activities. Also, huge investments were made in sectors which did not promise adequate return on the capital invested. Post-1991, with declining revenues, and budgetary gaps, the government withdrew its budgetary support, and increased the pressure on them to produce profits, and thus dividends. While, their social and other gains were taken for granted, PSEs were criticized for not producing adequate profits and for entering into fields like Tourism and food supplies. This was partly the result of the global movement to private industry. Over the years, a focused bureaucratic and inflexible approach led to the sapping of the autonomy. Somewhere down the lane, the government lost clarity in its roles of governance, as investor, regulator and business manager. The government paid little heed to the constitution of the board of directors, and hardly empowered them.There are a large number of private sector units today, where ownership rests with government owned finance institutions. These companies are not hampered by bureaucratic control, and therefore are able to perform much better. Privatization may have served as a panacea to some of the developed countries, but a country like India has to find its own solutions bearing in mind its needs. There is a virtue in following a middle path. The insurance industry in India has undergone a sea change ever since it was decided that

foreign direct investment will be allowed in this sector till a maximum limit of 26 percent. Since then the insurance industry has become a prosperous domain. However, the Union Government still owns several insurers who are the major players in the market

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Insurance Provider- Overview and History One of the earlier insurance companies of India was the Oriental Life Insurance Company, which was set up by Anita Bhavsar. Based in Kolkata, the company was meant to cater to the Europeans. In the pre-independence era the Indians were supposed to pay higher premiums than the foreigners. The first Indian insurer was Bombay Mutual Life Assurance Society, which was set up in 1870. The start of the 20th century saw several new insurers in India. The Life Insurance Companies Act and the Provident Fund Act were passed in 1912 for regulating the insurance industry. As per the Life Insurance Act 1912 it became mandatory for the periodic value of an insurer and premium rate tables to be determined by an actuary. But, there was still some inequity between the treatment meted out to Indian and the international insurers. At present National Insurance Company, established during 1906, The Indian government passed an ordinance on January 19, 1956 whereby the life insurance sector was nationalized and the Life Insurance Corporation (LIC) came into existence.

LIC was created by the amalgamation of the following: 154 Indian insurers 75 provident societies 16 non Indian insurance companies The Indian parliament passed the General Insurance Business (Nationalisation) Act in 1972 and the general insurance sector was brought under governmental control from January 1, 1973. 107 insurers were collated and grouped into 4 insurers:

National Insurance Company

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Oriental Insurance Company New India Assurance Company United India Insurance Company

LIC was the major company till 1990s when the insurance sector was opened for the private players. From December 2000 onwards the 4 companies of GIC were delinked from itself.

After the government announced the inclusion of private companies and 26% FDI in the insurance industry, the life insurance sector has done commendably, especially in terms of growth. LIC has been the major name in this sector but other insurers like Bajaj Allianz, Birla Sun Life, and HDFC Life have gained a certain level of prominence as well.

Bajaj Allianz Life Insurance: Bajaj Allianz is one of the leading names when it comes to growth among the privately held life insurers in India. It has more than 1200 branches across the country and provides unit linked, child, traditional and pension life plans.Birla Sun Life Insurance: Birla Sun Life Insurance is one of the leading life insurers in India among the privately held organizations. It is one of the major contributors to the country's insurance sector with ground breaking products and facilities such as Unit Linked Insurance Plans, free look periods, and business continuity plans.

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HDFC Life: HDFC Life is among the best private life insurers of India and provides both group and individual insurance products. It has a substantial financial expertise that helps it to properly administer long term investments. It is present in excess of 700 cities and has almost 568 branches. It also has approximately 2 lakh financial consultants and offers several customized plans. ICICI Prudential Life Insurance: ICICI Prudential Life Insurance is among the earliest private life insurers to operate in India. It started functioning from December 2000 onwards following the consent of IRDA. Since its establishment the organization has underwritten more than 10 million policies. As per IRDA data it is also a leading insurer in terms of market share. ING Vysya Life Insurance:The head office of ING Vysya Life Insurance is at Bangalore and has, of late, completed 10 years in India. It is a joint partnership of ING Insurance International BV, and Exide Industries. At present it has more than a million policy holders across the country in addition to offices in at least 200 cities across the country. Life Insurance Corporation Life Insurance Corporation is the biggest investment company and insurer in India. It is owned wholly by the Indian government and the insurer provides almost 24.6 percent of the aggregate expenditure of the national administration. It owns assets worth almost INR 13.25 trillion. It was incorporated during 1956 by merging together more than 240 provident societies and insurers. Max Life Insurance: Max Life Insurance started its operations during 2001 and is presently one of the leading names among the privately held life insurers in India. It offers both group and individual based life products and operates across the country with a wide distribution network. It is a joint venture of the Japan based Mitsui Sumitomo Group and Max India, an Indian conglomerate. The other life insurance companies in India may be mentioned as below:

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1. Aviva Life Insurance 2. Sahara India Life Insurance 3. Shriram Life Insurance 4. Bharti AXA Life Insurance 5. Future Generali India Life Insurance 6. IDBI Federal Life Insurance 7. Canara HSBC Oriental Bank of Commerce Life Insurance 8. Met Life India Insurance 9. AEGON Religare Life Insurance 10. Kotak Mahindra Old Mutual Life Insurance 11. DLF Pramerica Life Insurance 12. SBI Life Insurance 13. Star Union Dai-ichi Life 14. Tata AIA Life Insurance 15. India First Life Insurance 16. Reliance Life Insurance

The general or non life insurance sector of India is primarily dominated by health insurance. However, with the levels of disposable income increasing among Indians, other forms of insurance like travel insurance and standalone accident policies are gaining ground as well. The leading general insurance companies functioning in India may be mentioned as below:

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Bajaj Allianz General Insurance: Bajaj Allianz General Insurance got its certificate of registration from the Insurance Regulatory and Development Authority (IRDA) on May 2, 2001 to initiate general insurance operations in India and this permit included health insurance as well. The insurer owns a paid up and authorized capital amounting to INR 110 crores. ICICI Lombard General Insurance: Among the private sector general insurance organizations of India, ICICI Lombard occupies the top spot, which it has achieved in a short span of time. It is also the first organization in India to have been conferred the certification of ISO 9001:2000. It has also been assigned an iAAA rating by ICRA that shows its credit potential. IFFCO Tokio General Insurance :Established on December 4, 2000 IFFCO Tokio has its headquarters at Gurgaon, Haryana. It is one of the leading general insurers in the private sector of India and operates across the country with 100 offices. It is a joint venture of Tokio Marine & Nichido Fire Insurance Group, the biggest listed insurer from Japan, and Indian Farmers Fertiliser Cooperative Limited and its associate organizations. National Insurance: National Insurance is among the quickest and biggest growers among the general insurers operating in India. The head offices of the insurer are at Kolkata - the bank was nationalized during 1972 following its establishment in 1906. It has almost 1000 offices across India and employs in excess of 16 thousand well trained professionals. New India Assurance: As far as gross premium collection including foreign operations is concerned New India Assurance is one of the biggest general insurers of India. The insurer is headquartered at Mumbai and is one of the various public sector insurance providers in the country. Dorab Tata established the company in 1919 and it was nationalized in 1973. Oriental Insurance: Oriental Insurance was established on September 12, 1947. Its headquarters are at New Delhi and it also has approximately 1000 offices spread across India. Besides it operates in Nepal, Dubai, and Kuwait as well. It has almost 16 thousand employees. At present it is wholly owned by the Union Government of India.

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Reliance General Insurance: Reliance General Insurance is one of the leading privately held financial services providers in India. It is one of the 3 leading banking companies and financial services providers in the private sector when it comes to net worth. It offers in excess of 94 customized products and serves corporate, individuals, and small and medium enterprises.

Following are the other general insurers operating in India: 1. HDFC ERGO General Insurance 2. Export Credit Guarantee Corporation of India 3. Agriculture Insurance Company of India 4. Star Health and Allied Insurance 5. Apollo Munich Health Insurance 6. Future Generali India Insurance 7. Universal Sompo General Insurance 8. Royal Sundaram Alliance Insurance 9. Shriram General Insurance 10. Tata AIG General Insurance 11. Bharti AXA General Insurance 12. United India Insurance 13. Max Bupa Health Insurance 14. Cholamandalam MS General Insurance 15. L&T General Insurance

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(2.2.3) HISTORY OF VEHICAL INSURANCE: In this section we have written a basic history of car insurance to show you how the same has developed over the years and how it is likely to continue into the future. The Birth of the Motor Car :Motor vehicles made their first spluttering appearance at the turn of the 20th Century but during the first years there was no requirement or consideration for the need of Insurance in any form. In the early years of motoring there seemed little need to consider the implications and requirements of insurance. In fact the first vehicles to hit the open road were so cumbersome and slow, the common horse and carriage was considered much more efficient and faster at the time. As with any technology, interest soon developed and the motor vehicle was developed and improved at an alarming rate. Within a short space of time the future of the motor car was guaranteed and its future uses were being heavily considered. Car Insurance During the First World War: By the time of the First World War in 1914 the motor car had developed dramatically and its role was considerable during the conflict.As a result of the war, many people were trained to drive the vehicles used in action. The implications of this meant a dramatic increase of interest in the motor vehicle. By the end of the First World War (1918) people were returning from the conflict with an interest to continue their driving experience.Even at this stage in time, no compulsory requirement for motor insurance existed. The price of a motor vehicle was certainly out the price range of the common man until the availability of hire purchase in the 1920s.Hire purchase suddenly opened the gateway for many to afford their own motor vehicles and within a short space of time; they became a common sight on the roads of Britain.

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Road Traffic Accidents: Due to the poor standards of driving skills and little road discipline, accidents soon became a common sight on the roads of Britain.A situation soon became apparent in the fact that many who had taken on the cost of buying their own vehicles were now finding themselves out of pocket if their vehicles were damaged or destroyed. The other side to this was the total lack of compensation for those innocent victims involved in these road traffic accidents, this situation led to the introduction of the first Road Traffic Act.By 1930 the situation had escalated to such proportions that the government of the time introduced the first Road Traffic Act. In basic form the Road Traffic Act made it compulsory for vehicle owners and drivers to be insured for their liability for injury or death to third parties whilst their vehicle was being used on a public road.Motor Insurance had appeared sometime before this but it had not been compulsory. Composite Insurers (Beginning to mid 20th Century): Large Composite insurers were dealing with most of the motor insurance business being handled at his time. Composite Insurers were those dealing with several types of Insurance i.e. Home insurance, life etc. For example: whoever insured you for anything at the time you would approach to insure your vehicle as well. There was very little competition in the market during this time. With the monopoly in trade available the Composite Insurers pooled together all their statistics and results to devise a schedule of rates and conditions. Each insurer had to abide by these so as to eliminate any competition. Prices were set and charged at the same rate by all the Composites.

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In addition to this, all policy conditions were set the same and all discounts set the same. Tariff Together these companies formed the Insurance Tariff (The restraints implemented by the Tariff divided the market and some insurers refrained from joining. This gradual breakaway eventually led to the eventual dissolution of the Tariff in 1968)

Competition to the Tariff During the early years two main groups remained outside the Tariff. These were: The Non Tariff Lloyds of London The Non Tariff - They offered cheaper rates and variable discounts. The lower premiums forced the Non Tariff to be more selective to underwriting, and to accept only the better risks. To keep costs down the Non Tariff had economy administration and stricter claims procedures. Because the Tariff had set the rules and conditions they were able to accept the higher risk business. Lloyds of London - Probably the best-known name in the Insurance world and established by a man named Edward Lloyd from a coffee shop in London. Once developed, Lloyds had an individual approach to insurance and specialised in schemes. For instance: Special schemes for Post Office workers, Clerical Staff and certain types of vehicle were available. Lloyds were substantially different to other insurers in the way they worked and in the service they offered. Lloyds sold their product via the broking system. Brokers were those who sold the product on behalf of the underwriting Insurance Company. At the turn of the Century Lloyds had already established a substantial trade in Fire and Marine trade. (At this period in time Britain had the largest maritime merchant fleet in the world, therefore marine insurance was given huge priority at the turn of the 20th Century.) Lloyds had established a style of business involving Syndicates. The syndicate was made up of Names who invested into the syndicate in the hope

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of receiving a dividend from the profit Lloyds would make. They also had to take the risk that Lloyds would make a loss through bad business and excessive claims which might then leave them liable to cover the costs. A classic example of this occurred in February 1989 when Britain was hit by severe winds that caused Billions of pounds worth of damage. Lloyds who had long been established found it easy to adapt to the new motor business and with the other Non Tariff Companies they profited from this new market. One man, the Underwriter, held the responsibility of making or breaking business in the Insurance world. He was responsible for predicting what market would make them money and they are often referred to as God. Insurance During the Second World War During the 2nd World War there was a dramatic reduction in business due to the massive petrol shortages and the recruitment of so many into action. Unlike the First World War, which saw a revolution in the development of the Motor industry, this War had an adverse effect on the motor industry and the motor insurance market, which established itself over the last 9 years. The Second World War ended in 1945 and it appeared as though time had stopped because the motor insurance market picked up where it had left off in 1939. Although the business of Insurance broking had been long established. A boom in motor Insurance Broking occurred during the 1960s. Lloyds as we have established relied on the service of brokers to sell their product.

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(2.2.4) HISTORY OF THEFT INSURANCE: Statistics say that identity theft is much more common now than it has ever been in the past. This is largely due to the advent and widespread use of the internet. However, identity theft did not begin over the internet. Long before the internet was around, identity thieves could steal your identity through "dumpster diving," or going through your trash to find personally identifying information on papers you had thrown out like bills and other documents. They could also use phone scams to find out your personally identifying information. For example, an identity thief could phone someone and tell that person that she had won a prize and he (the thief) just needed some personal information like her birth date or social security number to verify her identity. The thief could then use this information in whatever way he chose. Now, with the advent of the internet and other technology, identity theft has become more common, easier to perform, and safer to perform without getting caught. The Rapid Growth of Theft: Identity theft is widely considered to be the fastest growing crime in the world. The rapid growth of identity theft is due to multiple ways in which the ways we live our lives and process information have been changed. All of these changes make it easier for others to access our personally identifying information and ultimately take hole of our identities. The internet has made transmission of our personally identifying information quick and easy, and sometimes less secure. We can access band and credit card accounts online, pay bills online, and shop and make credit card transactions online. All of these processes make things quicker and more convenient, but they also pose risks to our personal information. Individuals can create spyware that is installed on our computers when we install freeware or other programs off the internet. This spyware can collect information about what sites we are going to, what passwords we are using, and what information we are transmitting, and then send it to someone else. This person can then use our personal information himself or sell it to someone else. Certain types of spyware called "Trojan horses" can even allow their inventors remote access to our computers and hard drives.

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When we make online credit card transactions, online retailers store our contact and credit card information in databases we assume to be secure. Marketing agencies collect information on out spending habits as well as contact information and personal information. This is stored in databases we assume to be secure as well. However, malicious employees of these types of companies may have access to our information. They may be bribed to give out our information or they may even take this information for their own use or sell it to others. Postal mail poses a threat as well. Credit card companies overflow customers and potential customers with pre-approved credit cards and courtesy checks meant to be used in place of the customer's credit card. If this mail is not opened and destroyed (preferably using a shredder) properly, identity thieves can rummage through your trash and take your credit for their own use. In the United States, social security numbers are also being used as a means of personal identification more commonly than in the past. And the more these valuable identifiers are used, the easier it is for someone to get a hold of yours and use it for himself. This rapid rise in identity theft means that it is important to learn how to protect yourself from identity theft by adopting simple prevention habits. You don't want to become a victim of identity theft yourself!

(2.2.5) HISTORY OF ACCIDENT INSURANCE:


Persons between the age group of 5 - 60 years can be covered under this policy. Coverage of Self is mandatory. Coverage is available for self, spouse and dependent children. Renewals up-to 70 years for self and spouse & Up-to 21 years for dependant children.

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Cover for Death - In the unfortunate event of death of the insured due to an accident, the entire Sum Insured will be paid to the nominee.

Cover for Permanent Total Disability - In the unfortunate event of permanent total disability of the person due to an accident, we will pay the entire Sum Insured to the person.

Cover for Permanent Partial Disability - In the unfortunate event of permanent partial disability of the person due to an accident, we will pay a certain percentage of up to 100% of the Sum Insured, depending on the extent of disability.

Cover for Temporary Total Disablement - Weekly Benefit for accidents resulting in home confinement up to 104 weeks.

Cover for Accident Hospitalization - Hospitalization expenses due to Accident resulting in claim for Death / Disablement* (*Applicable only for Sum Insured Rs.25 lacs and above)

Cover for transportation of mortal remains - In the unfortunate event of accidental death, we will pay the nominee a sum of up to Rs. 5000 towards transportation of the mortal remains to residence.

Education Grant - In case of death or permanent total disability, we will pay an education grant for the benefit of dependent children of up to Rs. 5000 per child (for up to 2 children).

Discount of up to 10% on insuring 3 or more family members. In a claim-free year, if the Policy is renewed without any breaks, the benefit under Death and Permanent Total Disablement coverage will be increased by 5%, up to a maximum of 25%.

An Accident Insurance offers you the much needed financial security you want to give your family. Personal accident insurance does not stop with death benefits but also avail cover for other consequences like permanent total disability, permanent partial disability and temporary total disability. The amount not only helps you recover but manage your day to day life as well. An accident can disrupt many plans you have for yourself and your loved ones future. Our accident insurance plan offers you the financial stability that becomes essential in such

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cases. The sum assured offered by the accident insurance policy becomes a major support and can save you from the financial crisis.

Accidents can happen to anyone, anytime. It takes only seconds or minutes to happen, but may take away the savings of many years, as aftermaths of accidents can be severe. In such a scenario, don't stretch your savings. Get your life back on track, with the financial backing of Royal Sundaram Personal Accident Insurance.

Our Accident Insurance offers global cover of up to Rs. 75 Lakhs, protecting families from financial instability in case of disability or death of loved one due to an accident.

Any Indian resident who falls in the age group of 18 years to 60 years, can avail this Personal Accident Insurance Policy. You can also insure your dependent children between 5 years to 21 years. Get a discount of 10% on total Premium on buying these policy online, for 3 or more family members..

In the unfortunate event of death of the Insured person, the entire Sum Insured will be paid to the Insured person's nominee. We request you to ensure that you provide a nominee for every family member insured under Personal Accident Insurance. In the unfortunate event of permanent total disability of the Insured person, the entire Sum Insured will be paid to the Insured person In the unfortunate event of permanent partial disability of the Insured person, a certain percentage of the Sum Insured will be paid to the Insured person. It is determined by the extent of loss. You can get more information about it in the Terms and Conditions page. Weekly benefit for accidents resulting in home confinement up-to 104 weeks (Weekly Income Benefit)

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Hospitalization expenses due to Accident resulting in claim for Death/Disablement (Applicable only if proposer has opted for Sum Insured of Rs.20 lacs and above).

Accidental insurance is one of the most ignored insurance category in India. As we all know majority people buy insurance either for tax planning or investment purpose but unfortunately both these benefits are not available in Accidental Policy. But does that mean you should not buy accidental Insurance. Think.. This article will cover:

What is personal accidental insurance & its features Benefits of accidental insurance Comparison of accidental insurance policies How premiums are decided in accidental policy

Insurance is the foundation of any financial life a person who is having dependents must first completely insure himself & then only should start thinking about investments. We should know that term plan is not for us but for our family and medical insurance is for us. So one should buy term plan when he is having dependents but medical insuranceis must for everyone. If we talk about accidental insurance it is equally important for us & family.

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How accidental policy premiums are decided Accidental policy premiums do not depend on the age of insured but on his work profile & working conditions. Occupational classification divides people in 3 levels (I have also added premiums from Apollo Munich for each category Sum Assured Rs 25 Lakh) Level 1 (normal risk) this includes people who are in administration functions and work in offices like accountants, bankers, doctors etc. Premium Rs 2600 Level 2 (medium risk) people who are working as labor in the field. Premium Rs 3600 Level 3 (high risk) people who work in mines, circus etc will come in the higher risk category. Premium Rs 5450 You can see as category changes premium substantially increases this premium doesnt include service tax. Premiums can be down if you are applying as family or group.

Other ways to buy Accidental Insurance We Indians love thali system & concept of free but let me remind you again that there is no free lunch. From thali system I mean that people try to add accidental insurance as rider with life insurance but my suggestion is you should keep both these insurance separate. This will give you a proper comprehensive insurance at lesser price. Manshu has written a good article How much insurance do you need? Some time you can also get accidental insurance with some credit card or even from few of the mutual fund companies. Here my suggestion is one should not count this insurance because this will give you an illusion that your insured. But actually you never know when you are discontinuing your mutual fund or surrendering your credit card.

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(2.3) POLICY OF GENERAL INSURANCE:


In the current scenario, Insurance is much more than just life cover. Over the years it has successfully identified the growing needs for security of its customers and in the process has covered each and every aspect of our life. Today insurance policies envelops everything ranging from robberies to wedding, shops to assets, travel to vehicles, etc. With the initiation of Triton Insurance Company of Calcutta, general insurance industry in India saw the emergence of India's first general insurance house. General Insurance in other words is a non-life insurance which insures everything excluding life. Health, Holiday, Accident, Travel, Mortgage Protection, etc are some of the aspects that General Insurance covers. As compared to the normal life insurance policies, general insurance policies function in a different method. Why are more people taking insurance policies?

One of the major reasons for an increasing number of people availing insurance policies in India is the growing level of awareness. People nowadays value their lives, their health, and their families even more than before given the tough economic circumstances and so want to make sure that everything is fine even if they are not there.

Yet another reason for the growing popularity of insurance policies is the benefit of tax exemption that is provided to family oriented and individual plans. Majority of the private insurers also provide lucrative returns and are now being availed by a section of the Indian society with greater disposable earnings.

There is an aspect of psychological comfort attached to the insurance policies as well - whenever an insurance is availed the policyholder can be more or less assured of a safe future for that particular part of his or her life.

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Top Insurance Policies

Following are the featured insurance policies of various insurers in India: Company Product

LIC

Jeevan Vaibhav

ICICI Prudential

ICICI Pru iCare

Reliance General Insurance

Reliance Private Car Insurance Reliance Travel Care for Students

Bajaj Allianz

CashRich Family Car Insurance Floater Health Guard Plan

HDFC Life

Click2Protect HDFC LIFE SMART WOMAN PLAN

Tata AIG Insurance

TataAIGMotorInsurance TataAITravelInsurance Tata AIG Wellsurance Family

Kotak Life Insurance

KotakAssuredProtectionPlan KotakAssuredIncomePlan Kotak Assured Investment Plan

Aviva

AvivaHealthSecure

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Aviva i-Life

Future Generali

FutureGeneralSmartLife Future Generali Health Suraksha

MetLife

RetirementPlans Met Monthly Income Plan

Star Union Dai-ichi Life Insurance

Suraksha Kavach

Shriram Life Insurance

ShriLife WealthPlus MoneyBack Shriram Ujjwal Life SP

Bharti AXA

Bharti AXA Life eProtect

Aegon Religare

iTerm

IDBI Federal

Termsurance Wealthsurance Childsurance Lifesurance Healthsurance Incomesurance Loansurance Homesurance Bondsurance Microsurance

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Canara HSBC OBC Life Insurance

DreamSmartPlan GrowSmartPlan FutureSmartPlan SecureSmartPlan Smart Sanchay Plan

DLF Pramerica Life Insurance

IncomeRakshak DLFPramericaFamilyIncome DLFPramericaFamilyFirst DLF Pramerica U-Protect

IndiaFirst Life Insurance

IndiaFirst Maha Jeevan Plan

Sahara Life Insurance

Sahara Vatsalya-Jeevan Bima

Apollo Munich Health Insurance

OptimaRESTORE

Star Health Insurance

FamilHealthOptima StarUniqueHealth Senior Citizen Health Insurance

IFFCO TOKIO General Insurance

AutoProtectorPolicy Individual Medishield Policy

New India Assurance

Householder'sPolicy MotorInsurancPolicy OverseasMediclaimPolicy Fire&MachineryPolicy IndustrialAllRiskPolicy

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Shopkeeper's Policy

Oriental Insurance

Oriental's

Motor

Insurance

Policy

Happy Family Floater Scheme

National Insurance

Car Insurance

Cholamandalam Insurance

MS

General

CholaMSPrivateCar CholaMSStudentTravel Chola MS Family Healthline

HDFC Ergo

Travel HDFC Ergo Health Suraksha

Insurance

Universal Insurance

Sompo

General

Householder's Shopkeeper's Motor Individual Health Bills

Insurance Insurance Insurance

Policy Policy Policy

L&T Insurance

my:health Medisure Prime Insurance

Tata AIG General Insurance Company Limited: The firm started its operation in 2001 and is a joint venture between American International Group Inc. (AIG) and Tata Sons. In the tie-up Tata holds the stake of 74% while AIG posses 26% of the venture. The General Insurance policies offered by Tata AIG General Insurance Company Limited in India are:

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Hospital Care Healthcare Maharaksha Secured Future Plan Householder Insurance Critical Illness Insurance Auto Insurance Travel Insurance Personal Accident Insurance Shopkeepers Insurance Mediclaim Insurance Hospital Cash Insurance

ICICI Lombard General Insurance Company Limited: The Company initiated it general insurance business in 2001 and is an ISO 9001:2000 certified firm. It is India's premiere private insurance firm and is collaboration between India ICICI Bank Ltd and Fairfax Financial Holdings Limited. At the Asia Insurance Industry Awards ceremony, the company was honored as one of the top three "General Insurance Company of the Year". The General Insurance policies offered by ICICI Lombard General Insurance Company Ltd in India are:

Householder Insurance Travel Insurance Personal Accident Insurance Auto Insurance Health Insurance

The Oriental Insurance Company Limited: The Company commenced its business in the year 1947 and offered insurance covers to the public at a feasible price. Since 1947, The Oriental Insurance Company Limited has been providing its services to all sections of the society besides offering exclusive covers to mega projects to firms venturing to establish power plants, chemical plants, etc. The General Insurance policies offered by The Oriental Insurance Company Limited in India are:

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Personal Accident Insurance Auto Insurance Shopkeepers Insurance Householder Insurance Travel Insurance Health Insurance

IFFCO Tokio General Insurance: Known as one of the finest general insurance firm in India, IFFCO Tokio General Insurance offers excellent service to its customers at reasonable costs. The firm has excelled in giving ingenious solutions to its vast clientele. It has been considered as consumer-centric firm and was the first to offer plans to its automobile and fertilizer customers. The General Insurance policies offered by IFFCO Tokio General Insurance in India are:

Travel Insurance Health Insurance Personal Accident Insurance Householder Insurance

Bajaj Allianz General Insurance Company Limited: A joint venture between Allianz AG, who holds 26% in the company's stake; and Bajaj Auto Limited, who hold the remainder shares; Bajaj Allianz General Insurance Company Limited initiated its operations in 2001. It has a capital foundation of around ` 148 crores and is a premiere private insurer in India offering all kinds of non-life insurance such as health, risk management, etc. The General Insurance policies offered by Bajaj Allianz General Insurance Company Limited in India are:

Auto Insurance Personal Accident Insurance Health Insurance Householder Insurance Travel Insuran

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(2.3.1) POLICY OF HEALTH INSURACE: I. Definition: A health insurance policy is a legal contract between an insurance company and the owner of the policy. Generally, the contract is limited in term, requires a payment by the policyholder to the insurance company (premiums), and details various conditions under which the insurance company will be responsible for the costs of medical care of the policyholder and possibly his or her family. Insurance companies calculate the likelihood and costs of various and multiple medical treatments for which they will be liable, and set an annual rate of premium to be paid by the policyholder. In the United States, the majority of medical provider payments are made under a fee for service basis, whereby the provider is compensated based upon the type and number of services rendered to a patient, rather than the outcome of the services. There are presently efforts within the healthcare community to use patient outcomes as the basis for payment, a method which many believe will lower costs while improving care. However, replacing the existing reimbursement system is likely to take years. In other words, we can continue to expect the fee-for-service model to dominate healthcare for some time. II. Effects 1. Society: Insurance can have various effects on society through the way that it changes who bears the cost of losses and damage. On one hand it can increase fraud, on the other it can help societies and individuals prepare for catastrophes and mitigate the effects of catastrophes on both households and societies. 2. probability: Insurance can influence the probability of losses through moral hazard, insurance fraud, and preventive steps by the insurance company. 3. Risk: Insurance scholars have typically used morale hazard to refer to the increased loss due to unintentional carelessness and moral hazard to refer to increased risk due to intentional carelessness or indifference. 4. Efforts: Insurers attempt to address carelessness through inspections, policy provisions requiring certain types of maintenance, and possible discounts for loss mitigation efforts.

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5. Investment: While in theory insurers could encourage investment in loss reduction, some commentators have argued that in practice insurers had historically not aggressively pursued loss control measures - particularly to prevent disaster losses such as hurricanes - because of concerns over rate reductions and legal battles. However, since about 1996 insurers began to take a more active role in loss mitigation, such as through building codes III. Components of a Health Insurance Policy 1. Insurance Premium: The health insurance premium is the fee that you pay in order to have coverage of the medical conditions and/or treatments described in the policy. Premiums are established through an underwriting process whereby potential purchasers of health insurance are categorized into specific risk categories based upon such factors as age, gender, and medical history. The level of premium is intended to reflect the likelihood that members of the insured group will incur medical costs equal to the projected loss ratio or less. Underwriting is necessary to avoid adverse selection in other words, ideally, premiums are set high enough so as to deter participation by those most likely to use the insurance, and low enough to encourage participation by those least likely to use it. Underwriting ensures that the people who purchase health insurance are a true cross-selection of risks, and dont only represent those who purchase health insurance because they are ill or expect to need it. 2. Deductibles: Health insurance usually requires that the covered policyholder bear a portion of the risk by paying initial medical costs up to an agreed-upon level before the health insurance is liable for payment. As the deductible amount increases, the premium decreases. For example, an annual deductible of $3,000 would require the policyholder to pay the first $3,000 in medical bills out-of-pocket before the insurance company will pay or reimburse any claim. Deductibles can be applied to individuals or to family groups. For example, the policy might have a $3,000 individual deductible and a $5,000 family deductible. In this case, the insurance company would pay the individuals medical claims when the accumulated expenses for that individual exceed $3,000 or when the total family expense exceeds $5,000, even though the total of no individuals claims equal $3,000.

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3. Co-payments: In addition to the deductible, policyholders are usually required to pay a portion of the cost of each medical treatment covered to reduce frivolous use of medical services. While higher co-pays reduce the insurance companys total exposure, the amount of the co-pay per incident is rarely high enough to result in substantial premium reduction for the policy. 4. Co-insurance: In order to share the risk and limit excessive utilization, policyholders remain liable for an agreed-upon level of expense, usually 80%. This limit is after the deduction of the co-payment. 5. Exclusions: Health insurance policies do not normally cover all medical expenses. The noncovered expense may be defined by medical condition, type of treatment, or medical provider. For example, most health insurers do not cover elective cosmetic surgery, such as face lifts, tummy tucks, or bariatric (obesity) surgery, except in certain rare occasions. Policyholders remain 100% liable for any excluded treatment or expense, and these expenses do not apply to the deductible amount defined in the policy. 6. Out-of-Pocket Maximums: The reverse of coverage limits, this component applies to the insureds maximum exposure for payment while the health insurance contract is in force. Once the out-of-pocket limit is reached, the insurance company pays all future covered costs (though co-pays and exclusions remain in effect) up to the coverage limit. For example, if the out-of-pocket maximum is $3,000 annually, once the policyholder pays that amount, the insurance company will pay 100% of the covered expenses minus the individual copays for each service. 7. Provider Panels: One of the biggest ancillary benefits to health insurance policyholders is the schedule of discounted fee payments negotiated between the insurer and medical suppliers and providers. In some cases, the amount actually paid for the treatment will be 30% to 40% of the providers usual and customary fees. For example, a service that would cost $1,000 to an uninsured patient could be provided to policyholders at $300 to $400, or even less. Each insurer negotiates a discount with providers based upon the number of the insurers policyholders and the projected utilization of the providers services.

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Based upon the rates to be charged, physicians, hospitals and other medical providers will be included into a defined network: In-Network.: The practitioners providing the greatest discounts are considered to be in-network. Insurance companies encourage policyholders to utilize in-network providers by covering all or a majority of the providers fees in accordance with the negotiated rates between provider and insurer, and may also reduce co-pays or co-insurance when the in-network provider is used. Out-of-Network.: Practitioners and medical providers who have not negotiated a preferred rate or minimal discounts are considered to be out-of-network. Policyholders who elect to use out-ofnetwork providers will usually pay higher fees for similar services provided by an in-network provider, and may additionally incur a higher co-pay and higher percentage of co-insurance. 8. Preauthorization: This is the process by which a health insurance policyholder gets prior approval of a medical procedure, or approval to see a specialist to ensure that the service or visit is covered. Most insurers require prior authorization before agreeing to cover a visit to a specialist practitioner. Policyholders should note that preauthorization is not a guarantee that the service will be covered, but rather that it is the intent of the insurer to cover the service pending review of the claim and the determination that the service was necessary. Many non-critical treatments require preauthorizations, and it is usually the policyholders responsibility to know if preauthorization is required. Failure to get preauthorization can result in the payment of a claim being denied. Insureds should pay special attention to the preauthorization requirement when seeing a specialist at the recommendation of their primary physician. Many primary caregivers are innetwork, but may unknowingly refer their patient to a specialist who is out-of-network. In such cases, the patient will be penalized by the payment of a higher expense, and may have the claim denied entirely.

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IV: TYPES OF HEALTH INSURANCE POLICY 1. MEDICLAIM POLICY: Two types of medical insurance plans are there: Individual health insurance policy :This is the policy where policyholder himself is covered in times of health problems; Family floater health insurance -: This is the policy where sponsor owns the policy and the people covered under it are called its members. You can protect your full family under this medic aim policy; Critical illnesses cover: Generally, most of the medical insurance products in India have a critical illness cover, though it comes with a waiting period. Also, when you purchase a comprehensive health insurance policy, there is generally a cap on the amount payable for critical illnesses cover. In a separate critical illness plan, the amount payable is lump sum. The main difference between a critical illness separate plan and a comprehensive plan is that while the first will give you a lump sum payment of your total sum assured in case you get admitted for a critical disease, the latter will pay only the amount spent on the treatment within the sum assured limits. Tax benefits Under Medical Insurance: Health insurance helps to save tax under section 80(D) of income tax act. This way you get dual benefit with health insurance as you save on tax as well as save on medical expenses. 2. GROUP MEDICLAIM POLICY: These days more and more companies are becoming employee-centric and every now-and-then introduce various benefits for employees betterment. Group insurance has emerged as one of the most preferred benefit. Group insurance ensures better health benefits for employees and increased employee satisfaction. Through this an employee can avail various benefits which are otherwise non-affordable in individual insurance policy. When an organization is going in for group med claim insurance policy, it should evaluate options like co-payment, names of the medical service providers on the preferred list and their location accessibility. Further, a good group med claim insurance plan should also offer some built in flexibility to individual needs within s the group. Group Health Insurance from Apollo Munich Health provides all this at a nominal premium. It not only offers coverage against the unexpected health concerns but also provides preventive health solutions. Apollo Munich Health is a joint venture between Indias largest integrated healthcare group, the Apollo Hospitals Group, and Munich Health, Europes leading healthcare insurer. With a backbone of over 60 yrs of experience globally, Apollo Munich Health offers a comprehensive range in corporate health insurance plans that are designed keeping company and employee needs in mind.

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Highlights of Apollo Munich Healths Group Health Insurance plans: Provides broad cover for medical treatment of illnesses and accidents that require in-patient hospitalization Critical illness cover (available as an option)Covers diagnostic procedures, boarding & lodging, ICU, Surgery cost and prosthetic costs among others

3. OVERSEAS MEDICLAIM POLICY : Highlights: Premium payable in Rupees and Claims settled abroad in foreign Currency. Policy available for frequent corporate travelers. Scope: Medical expenses incurred by the insured persons, outside India as a direct result of bodily injuries caused or sickness or disease contracted are covered. ADDITIONAL Add-on benefits:-Besides the above additional add-on benefits are available under Business & Holiday and CFT cover(Except Plan C and Plan D) 1. Personal Accident 2. Loss of checked in Baggage 3. Delay of checked in Baggage 4. Loss of passport 5. Personal Liability Premium: Depends on Age-band, Trip-band and Country of visits. Coverage: Initially cover up to 180 days is provided under Business & Holiday Plan .Extension allowed on original policy for further period of 180 days subject to declaration of good health.

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(2.3.2) POLICY OF FIRE INSURANCE

With more and more people opting for a luxurious lifestyle, as a result becoming gadget freaks, the risk of facing a crisis situation i.e. fire accidents have increased considerably. In such circumstances, the best bet would be to get your house and commodities secured and insured. One such policy is the home fire insurance policy, also called Standard Fire and Special Perils Policy, the bulwark against such potential perils. It offers protection against the risk of loss or damage due to fire or special perils. The policy pays for the actual cost of repairs, replacement or setting up of the item lost or damaged. However, claim settlements are subject to the market value of the property damaged, at the time of loss, upon an overall limit of the sum insured opted. If the individual value of assets is not furnished, the value of each property is considered as not more than 5% of the total sum insured. Know more about the types of fire insurance policy, the documents required and what is covered in these policies. A fire insurance is a contract under which the insurer in return for a consideration (premium) agrees to indemnify the insured for the financial loss which the latter may suffer due to destruction of or damage to property or goods, caused by fire, during a specified period. The contract specifies the maximum amount , agreed to by the parties at the time of the contract, which the insured can claim in case of loss. This amount is not , however , the measure of the loss. The loss can be ascertained only after the fire has occurred. The insurer is liable to make good the actual amount of loss not exceeding the maximum amount fixed under the policy. A fire insurance policy cannot be assigned without the permission of the insurer because the insured must have insurable interest in the property at the time of contract as well as at the time of loss. The insurable interest in goods may arise out on account of (i) ownership, (ii) possession, or (iii) contract. A person with a limited interest in a property or goods may insure them to cover not only his own interest but also the interest of others in them. Under fire insurance, the following persons have insurable interest in the subject matter:-

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Owner Mortgagee Pawnee Pawn broker Official receiver or assignee in insolvency proceedings Warehouse keeper in the goods of customer A person in lawful possession e.g. common carrier, wharfinger, commission agent. The term 'fire' is used in its popular and literal sense and means a fire which has 'broken bounds'. 'Fire' which is used for domestic or manufacturing purposes is not fire as long as it is confined within usual limits. In the fire insurance policy, 'Fire' means the production of light and heat by combustion or burning. Thus, fire, must result from actual ignition and the resulting loss must be proximately caused by such ignition. The phrase 'loss or damage by fire' also includes the loss or damage caused by efforts to extinguish fire. The types of losses covered by fire insurance are:1. Goods spoiled or property damaged by water used to extinguish the fire. 2. Pulling down of adjacent premises by the fire brigade in order to prevent the progress of flame. 3. 4Breakage of goods in the process of their removal from the building where fire is raging e.g. damage caused by throwing furniture out of window. 4. Wages paid to persons employed for extinguishing fire.

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The types of losses not covered by a fire insurance policy are:1. loss due to fire caused by earthquake, invasion, act of foreign enemy, hostilities or war, civil strife, riots, mutiny, martial law, military rising or rebellion or insurrection. 2. Loss caused by subterranean (underground) fire. 3. Loss caused by burning of property by order of any public authority. 4. Loss by theft during or after the occurrence of fire. 5. Loss or damage to property caused by its own fermentation or spontaneous combustion e.g. exploding of a bomb due to an inherent defect in it. 6. Loss or damage by lightening or explosion is not covered unless these cause Actual ignition which spread into fire. A claim for loss by fire must satisfy the following conditions:1. The loss must be caused by actual fire or ignition and not just by high temperature. 2. The proximate cause of loss should be fire. 3. The loss or damage must relate to subject matter of policy 4. The ignition must be either of the goods or of the premises where goods are 5. The fire must be accidental, not intentional. If the fire is caused through a malicious or deliberate act of the insured or his agents, the insurer will not be liable for the loss Types of Fire Insurance Policies:1. Specific policy:- is a policy which covers the loss up to a specific amount which is less than the real value of the property. The actual value of the property is not taken into consideration while determining the amount of indemnity. Such a policy is not subject to 'average clause'. 'Average clause' is a clause by which the insured is called upon to bear a portion of the loss himself. The main object of the clause is to check under-insurance, to encourage full insurance and to impress upon the property owners to get their property accurately valued before insurance. If the insurer has inserted an average clause, the policy is known as "Average Policy"

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2. Comprehensive policy:- is also known as 'all in one' policy and covers risks like fire, theft, burglary, third party risks, etc. It may also cover loss of profits during the period the business remains closed due to fire. 3. Valued policy:- is a departure from the contract of indemnity. Under it the insured can recover a fixed amount agreed to at the time the policy is taken. In the event of loss, only the fixed amount is payable, irrespective of the actual amount of loss. 4. Floating policy:- is a policy which covers loss by fire caused to property belonging to the same person but located at different places under a single sum and for one premium. Such a policy might cover goods lying in two warehouses at two different locations. This policy is always subject to 'average clause'. 5. Replacement or Re-instatement policy:- is a policy in which the insurer inserts a reinstatement clause, whereby he undertakes to pay the cost of replacement of the property damaged or destroyed by fire. Thus, he may re-instate or replace the property instead of paying cash. In such a policy, the insurer has to select one of the two alternatives, i.e. either to pay cash or to Documents Required for Fire Insurance Claim 1. True copy of the policy along with schedule. 2. Report of fire brigade. 3. Claim Form 4. Photographs 5. Past claims experience What is Covered in Fire & Special Perils Policy? 1. Accidental fires, lightning, explosion and implosion due to pressure vessels(used for domestic purposes) 2. By rioting mob, striking workers, malicious acts by third parties and damage by terrorists 3. Impact damage by any rail/road vehicle or animal by direct contact. 4. Commodities damaged by water used for extinguishing fire.

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5. Loss\damage caused by pulling down of adjacent buildings by the fire brigade to prevent the flames from progressing. 6. Breakage of commodities in the process of their removal from the premises where fire is intense. 7. Aircraft and other aerial and and/or space devices and/or articles dropped therefrom, excluding destruction or damage occasioned by pressure waves caused by such devices 8. Payments made to people employed in extinguishing fire. 9. Subsidence and landslide, including rock slide. 10. Natural calamities like storm, cyclone, typhoon, hurricane, tornado, flood and impact damage. 11. Damages caused due to bursting or overflowing of water tanks, apparatus and pipes 12. Bush Fire

(2.2.3) POLICY OF VEHICLE INSURANCE:


Underwriting Underwriting is the heart of any insurance company. It is underwriters who determine what risks to accept and how much to charge for each policy. Modern underwriting uses technology to rate and underwrite most individual risks, with underwriters charged with overseeing those systems. Large commercial accounts are still rated and underwritten by individuals who use their expertise to identify good risks from bad. Operations And Policy Administration The operations departments of insurance companies are responsible for the delivery of information to an underwriter, whether that delivery is a paper file or computer record. The operations department is also responsible for collecting all the data from the underwriter and using it to produce a policy contract the client. Most operations departments feature an army of clerks, data-input technicians, premium collection staff and assistants, as well as a healthy contingent of IT professionals.

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Claims The claims department is responsible for honoring the promise of the insurance policy. These employees start by accepting a loss report from the client or broker, and dispatch field adjusters to examine the loss. They then guide the insured through the process of repairing or replacing the lost or damaged items. Most claims departments include fraud experts who prevent fraudulent or exaggerated claims, as well as those who specialize in working with contractors and trades people.

Motor Insurance Policy- Comprehensive vehicle Insurance In Car insurance, comprehensive coverage covers damage to your vehicle caused by certain events. These include (but are not limited to) fire, theft, vandalism and falling objects. This also comes with a deductible you volunteer to pay and which you are obliged to pay before the insurance company pays the remainder. It is advisable to buy the Comprehensive insurance policy because it covers the insured, vehicle and third party in a single policy. This type of insurance covers all the risks covered in the Motor Vehicles Act plus loss or damage caused to the vehicle due to: 1. Flood, hurricane, cyclones, typhoon, storm 2. Theft, burglary, strikes and riots 3. Terrorism, Malicious acts 4. Accident, Fire or Theft. 5. Floods and earthquake 6. Transit by road, rail, watercraft, air, elevator, etc. 7. Towing charges incurred after an accident. 8. Explosion, self-ignition, lightning

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The Comprehensive Insurance coverage excludes the loss or damage caused due to: a. Driver under the influence of alcohol at the time of impact.

b.

Vehicle being driven by a person not holding a valid driving license.

c.

Damage to the tyres unless the vehicle is also damaged.

d.

Wear and tear or mechanical breakdown.

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(2.4) PROCSS OF GENERAL INSURANCE:


Risk based capital requirement & Solvency II In contrast to the current regulatory Solvency Capital (which is 150% of the required capital margin), the Economic Capital calculation recognises capital requirement for specific risks a non-life company is exposed to.

Whereas the current regime is a combination of regulatory capital and maintenance of solvency of margin, per Insurance Act and regulations, the Economic Capital is a key component of the insurer appetite framework for it provides a measure of risk related to the business. (Typically, Economic Capital is calculated by determining the amount of capital that insurer needs to ensure that its realistic balance sheet stays solvent over a certain time period with a prespecified probability. For example, economic capital may be determined as the minimum amount of capital required to make 99.5% certain that the insurer remains solvent over the next 12 months.) The word economic indicates the fact that it measures risk in terms of economic realities rather than regulatory or accounting rules which may have been designed to support non-economic principles. This word also indicates that part of the measurement process involves converting a risk distribution into the amount of capital that is required to support the risk, in line with the insurers target financial strength. (For example: credit rating).

The regulatory office in India has therefore been engaging the Indian Insurance market to get current and future financial condition of insurers, based on technical notes on asset liability management and the economic capital modeling. In its estimation of the Economic Capital for general insurance companies in India, it has drawn heavily on the standard

formulae/methodology used under Solvency II framework.

Solvency II introduces a new harmonised EU-wide regulatory regime. The key features of Solvency II include economic risk-based solvency requirements where insurers are required to hold capital against a range of risks, not just insurance risks. It is a total balance sheet type

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regime where all risks and their interactions are considered. The insurers are required to identify measure and proactively manage risks.

An insurer must undertake an Own Risk and Solvency Assessment (ORSA) which aims to ensure senior management have conducted a review of risks and that the insurer holds sufficient capital against those risks.

The focus of the ORSA assessment could incorporate risks posed to the wider economic environment, including but not limited to risk appetite and strategy, non-core activities, reverse stress testing, corporate governance, role of the chief risk officer, etc. A few other areas of focus could be:

Concentration of business: HIH, the Australian insurance group that ultimately collapsed in 2000, provided a good example of a groups failure being detrimental to the local insurance market. HIH was the dominant provider of the indemnity coverage to the building industry, and its demise starkly demonstrated the impact that a concentration of business underwritten in a particular market or segment can have on the local economic system. The dominance of HIHs professional indemnity business was allowed unchecked, amassing a disproportionate market share. The analysis whether such sudden withdrawal of cover could give rise to any wider economic impact on the local market had not been fully appreciated. Company culture & ethics: Typically, a firms culture has not been the remit of regulation, but it is hard to argue that behavioral issues were not deeply rooted in many causes of the crisis. Excessive executive compensation has fuelled societys general belief that the financial sector is not as ethically sound as it could be.

Solvency II further ensures harnessing market discipline to support regulatory objectives. It aims to ensure consistent supervisory reporting and disclosure across the EU (European Union). Insurers should be prepared to disclose more information publicly than at present.

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Solvency II and Lloyds Framework Directive continues to treat Lloyds as a si ngle entitythe Association of underwriters known as Lloydsand the Solvency II capital requirements apply to Lloyds as a whole.

FSA (Financial Services Authority), UK is generally cited as a leading regulator globally and one of FSAs key strengths is the rigorous approach it brings to policy formulation and implementation. For instance, in terms of implementation of Solvency II attempt is to approach the expected change in implementation date to January 2014 in a way that allows breathing space without losing momentum.

It is imperative that we work on a definitive time frame in India to align ourselves to the Solvency II regime as a proactive measure, the lines of businesses strictly following the broad international practices and definitions. Perhaps 1 April 2015 would be a good timeframe to move in the direction of Solvency II. An international reinsurance hubWhy India needs it?

A look at the Singapore Insurance market will probably help

It is now more than a decade since Singapore opened up entry to the direct general insurance industry, removing the cap which had existed on the percentage of foreign ownership of local insurance companies. During intervening period, the Singapore insurance market has markedly developed and matured and can now rightfully lay claim to being Asias premier insurance and reinsurance centre.

During this time, international insurance companies have increasingly opted to base their regional headquarters in Singapore and as of July 2010, following recent additions such as Allied World and the return of Aviva to the non-life market, there were 155 registered insurers and authorised reinsures in Singapore.

These developments have been led by the growth of OIF (Offshore Insurance Fund) reinsurance business, with risks from all around the region now being placed into the

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Singapore reinsurance market. China is now the largest single source of Singapores OIF business.

As well as establishing itself as the regional hub for reinsurance business, Singapore is also the largest domicile for captive insurers in the region. As of July 2010, there were some 62 captive insurers based in Singapore, up 20% from a decade ago. This in turn has prompted the establishment of numerous captive managers to service this sector of the industry.

The local market is now attracting a significant amount of business from around Asia, which was previously placed directly into the London and Bermuda markets.

The growth in the industry has also led to a flood of ancillary providers, such as specialized (re) insurance lawyers, forensic accountants and business recovery experts establishing a local presence.

Supportive regulatory environment The Monetary Authority of Singapore (MAS) the islands insurance regulator is very supportive of the development of the insurance industry and its approach is indicative of the countrys fair regulatory environment. Various financial incentives have been made available to global insurers considering setting up regional headquarters in Singapore.

The attraction of Singapore for many foreign insurers is less the market itself than the opportunities it offers as an insurance hub as a whole, a role that the MAS is keen to promote and, faced with an increasingly competitive local market, companies are likely to look more and more to offshore business.

The MAS continues to refine its hands-off approach to market supervision, relying increasingly on self-regulation through the General Insurance Association (GIA) and by means of legislative instruments such as risk based capital and corporate governance. It has stated its intentions of continuing to promote Singapore as the main insurance center in Asia by encouraging investment in insurers and captives, particularly those writing foreign business. The MAS enjoys a good relationship with the insurance companies and the GIA. There is a strong mutual respect and a tradition of consultation in connection with any legislative change that will affect the market.

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The Association has a self-regulatory function that is enforced through market agreements. Lloyds Asia Indicative of the movement of underwriting capital into Singapore is the Lloyds Asia Platform, on which Lloyds syndicates write local and offshore business through service companies. Established in 1999 pursuant to the Lloyds Asia Scheme, the Platform has seen rapid growth in recent years. There are 18 syndicates trading on the Platform through 15 service companies. Syndicates planning to establish a service company to trade within Lloyds Asia require approval from both Lloyds and locally from the MAS. In addition to being subject to the Lloyds Asia Regulations in Singapore, they need to comply with Lloyds Acts and Byelaws, such as the Lloyds Asia instruments which exist for both Singapore and offshore policies. Service companies must also sign up to the Lloyds cover holders undertaking. Requiring amongst other things that cover holders agree to comply with local insurance, fiscal & tax laws, regulations & requirements of the jurisdiction in which they trade.

The legal framework A legal system based on tried and tested common law principles and Singapores reputation as an open and fair jurisdiction for dispute resolution have also assisted this development.

Whilst specific legislation has been enacted with regard to the regulation of insurance business, the law applicable to insurance contracts in Singapore generally follows English common law which, so for as it was part of the law before 1993, broadly continues to apply in Singapore. Decisions of the English Courts on matters of insurance and reinsurance are highly persuasive, providing reassurance to international underwriters familiar with the approach and application of English law.

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A growth centre for arbitration Related to this, there is another development worthy of note. In parallel with and complementary to, the evolution of insurance sector has been the growing reputation of Singapore as a regional and global centre for arbitration. This has been assisted by a judicial philosophy which is supportive of arbitration and perhaps more obviously, the enactment of legislative changes to liberalise and update the legal regime for arbitrations and open up the legal market for practitioners.

In 2004, the Legal Profession Act was amended to remove restrictions on foreign lawyers representing parties in arbitration in Singapore. Foreign lawyers can now appear as counsel in Singapore law arbitrations and give advice, prepare documents and provide assistance in relation to or arising out of arbitration proceedings (other than taking steps before the local courts).

This is of substantial importance for the (re)insurance industry as it enables international law firms with globally recognised (re)insurance pedigrees to act on behalf of clients in disputes being arbitrated in Singapore. This is particularly relevant as more and more policies issued are providing for disputes to be resolved by Singapore law and arbitration.

The Singapore Interaction Arbitration Centre (SIAC) which is widely regarded as a leading international arbitral institution issued the fourth edition of its rules in mid-2010, to further refine its arbitral framework. SIAC administrated arbitration is becoming increasingly popular. Singapores emergence as a global arbitration centre provides insurers with the option to include arbitration clauses providing for dispute resolution in a neutral and fair jurisdiction with an arbitral appointing body which should ensure the appointment of an independent sole arbitrator or umpire. This need not involve the adoption of SIACs rules. The parties can opt for ad hoc arbitration, for example with its seat in Singapore and English law to apply, but with the reassurance of an independent party such as the chairman of SIAC as the default arbitral appointing body.

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(2.4.1) PROCESS OF HEALTH INSURANCE:


What Is Health Insurance Definition & How It Works: The purchase of a health insurance policy for the first time is, in many ways, a rite of passage a signal that you have passed from child to adult. The purchase of a health insurance policy is also one of the more expensive acquisitions you will make during your life, rivaling the expense of buying a home. At the same time, most people do not understand health insurance or the components of the contract between insurance companies and themselves, often learning to their dismay that coverage they thought they had is actually nonexistent

The way to avoid lacking vital health coverage when you need it most starts with understanding policy basics. When applying for Health Insurance: With rising medical costs, it has now become imperative for everybody to get Health Insurance coverage. Here are the Top 5 factors to keep in mind: 1. AdequateCoverageAmount: Take an adequate cover to protect yourself and everyone who is dependent on your income - e.g. your family members. Hospitalization costs are higher in metros; people living in metros typically should opt for a higher coverage amount 2. Re-imbursementorCashAllowance Health Insurance comes in various flavors. It is imperative that you understand the difference between re-imbursement plan and a cash allowance plan. A cash allowance plan cannot replace a re-imbursement plan (often referred to as "Med claim" - because here the amount you get is based on the actual amount of expense incurred whereas in a cash allowance you get a fixed lumpsum for every day you spend in the hospital - no matter how expensive the treatment might be

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3. Cashless Facility Imagine having to run around to arrange for cash in an emergency situation for getting admitted to the hospital of your choice! Most insurance companies had launched cashless cards for reimbursement based plans - so that you could simply present the card at the time of admission and an administrator would take care of settling your hospital bills directly from the insurance company. However in mid-2010, several public sector insurers withdrew support for the cashless facility. Before buying your Health Insurance, you may want to check with your insurer how many hospitals does he offer support for the cashless facility and especially about the hospitals in your area. But please remember that just because a hospital is in the cashless network at the time of taking your first policy it may not remain in the cashless network when your claim arises. So this cannot be the sole factor for deciding about the health insurance company. 4. AgeuntilRenewalsallowed Most of us will certainly fall ill at some point of our lives - and the chances are that we will fall ill when we are older. Entering into a new Health Insurance plan is significantly cheaper and easier when one is young & healthy. The chances of having any major pre-existing disease is lower so most plans are available and also the insurance company must disclose today the premiums applicable today as well as the premiums applicable at an older age Ensure that your health insurance plan is renewable after 65 - because at that age, you don't want to discover that health insurance is difficult to get when you need it the most.

5. Co-pay One of the fears insurance companies nurse is that the customer might opt for unusually expensive hospital rooms or procedures than are warranted. To overcome this, some insurance companies introduce a co-pay or sub-limits. In a co-pay you are required to share some of the expenses incurred - regardless of the amount covered. E.g. say you have a 3 lac cover and the bill you want to be re-imbursed amounts to Rs. 2 lacs. With a plan that has a 20% co-pay, you will only get 80% of the bill re-imbursed by the insurer i.e. Rs. 1.6lacs and you will have to bear the rest).

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For the same coverage amount, a plan with a co-pay should come with a much lower premium than one without a co-pay. Sub-limits simply restrict the amount of re-imbursement for individual bill items - e.g. even a Rs 1 lac bill may not be fully re-imbursed for a Rs 3 lac coverage amount, if say the sub-limits set on room rentals/ doctors fees/ OT charges - or even a specific procedure (e.g. cataract/ knee replacement) is exceeded. Again a plan with sub-limits should have a lower premium for it to be worth considering. 6. Temporary and Permanent exclusions Normally most policies provide coverage for pre-existing diseases only after a waiting period. Remember pre-existing disease is not just the disease you are suffering from at the time you took the first policy but also any other disease that is caused due to such pre-existing disease. A common example is that heart illness will also be treated as pre-existing (even though at the time you took the first policy you had no heart disease) if you had diabetes when you took the first policy since the heart illnesses is caused by Diabetes. This single item is responsible for most of the disputes between insurance companies and consumers. So make sure you disclose everything that is required in the form. Please do not sign a blank form and leave it to the agent to fill the form later. This will ensure that at least at the end of the waiting period you will get the disease covered. If you do not disclose the disease then you run the risk of your policy being cancelled or a renewal being denied if this fact is discovered later. Apart from the above illness contracted during the first 30-90 days of the first policy is normally not covered. Some specific diseases/treatment such as cataract , knee replacement, etc. may also be covered only after a waiting period. There are permanent exclusions as well such as beauty treatment, sexually contracted diseases, non allopathic hospitalization expenses , etc. Always read the policy brochure carefully and also look at the section dealing with permanent exclusions in the policy document.

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(2.4.2) PROCESS OF FIRE INSURANCE:

1) Intimation to Insurance Company: The insured must give immediate intimation to the insurance company regarding the loss. The necessary details like the day, date, time and causes of fire and in case of marine insurance, ship and voyage taken should be mentioned.

2) Assessment of the loss: The insured makes an assessment of the actual loss. Such assessment is required to fill the claim forms correctly in respect of the loss of goods or property.

3) Submission of the claim form: the insured must fill all possible details in the claim form. He must lodge the claim form within 15 days of the fire to claim compensation. In case of marine insurance, the insured should lodge a claim with

Delay in submission of claim form may result in non-acceptance of the claim.

4) Evidence of Claim: Along with the claim form, the insured must send certain proof of fire and other records, if available and if necessary. The evidence should enable the insurance company to determine the amount of loss.

5) Verification of Form: The claim form along with the supporting evidence is verified by the insurance company. The insurance company then appoints the surveyors to conduct an assessment of the actual loss.

6) Survey: After the receipt of the form, and necessary verification, the insurance company appoints the surveyors to assess the actual loss. The surveyors conduct the necessary investigations. They investigate into the cause of fire, the actual amount of property lost and other relevant details. The surveyors then make the report of their findings and assessment of the loss.

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7) Landing Remarks: In case of marine insurance, the insured should obtain landing remarks, from the port authorities, if survey report is not obtained.

8) Appointment of the arbitrator: There may be a dispute regarding the amount of claim. In such a case, an arbitrator is appointed, acceptable to both the parties, to settle the amount of the loss.

9).Settlement of Claims: If there is no dispute between the two parties, as to the amount of loss, the insurance company then makes necessary payment to the insured. In case of marine insurance, the amount of money is paid to India Exporter in Indian rupees. If the claimant is not a resident of India, payment maybe made in foreign currency. The identification of the seven Ps of marketing mix helps a firm to form better marketing strategies and also to serve the customers in a more efficient manner.

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(2.4.3) PROCESS OF VEHICLE INSURANCE:


1.HowtoPreventVehicleTheft The reality is that no fool-proof methods exist to guarantee that your vehicle will never be stolen. Determined criminals may find a way to steal your car, regardless of how many precautions you have taken. The good news is that you can deter vehicle theft by taking some simple precautions. This will greatly reduce the risk of ever having to file an insurance claim for a stolen vehicle. Here are some tips on how you can avoid having your vehicle stolen. After all, an ounce of prevention is worth a pound of cure

2.Anti-Theft Devices Using one of the many anti-theft devices currently available will lower your risk of having your vehicle stolen. Better yet, it will also lower the amount you need to pay for your insurance premium. Make sure you lock your car as soon as you park it, and purchase a jack, car alarm or club. Many of the newer car models include built-in anti-theft features that make it virtually impossible to steal them. Whenever possible, park your vehicle in a lit area or inside a garage.

3.VehicleIdentificationNumber Engraving your vehicle identification number inside your vehicle is another good idea. Make sure you choose an area that is not easily visible. This will prevent a thief from being able to alter the number. The hidden etching of your VIN will make it much easier to identify your stolen vehicle, particularly if it has been significantly altered.

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4.Storing Important Documents Dont use your vehicle to store any important documents. Make a copy of your registration, drivers license, insurance information and any relevant receipts for repairs or upgrades to your vehicle. These documents will make it easier to identify your stolen vehicle. However, you will need to ensure that your vehicle registration papers and original insurance remains in the vehicle.

5.TakePhotosofYourVehicle Storing some photos of your vehicle will also help you in the event it is ever stolen. You will be able to prove the actual value of your vehicle much easier when you submit a claim to your insurance company. A clear photo may also help the police locate your stolen vehicle

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(2.4.4) PROCESS OF ACCIDENT INSURANCE:


The first step towards making a claim should be to call us on our toll free number of our Tollfree Number 1-800-2700-2700. Our claims service representative will guide through the claim procedure and documents required. Complete the claim form relevant to the nature of loss as indicated below: Claim Procedure for Accidental Death:

Fill a Claim Form as per 'Form E' File a Police FIR or Police Panchnama Attach a Post-mortem Report or Coroner's Report Attach a Death Certificate For payment to beneficiary, attach a succession certificate or notarized affidavit certifying the legal heir status.

Where payment to beneficiary is through a notarized affidavit, a letter of indemnity on Rs.200 stamp paper will be required. Contact us for the indemnity format. Claim Procedure for Accidental Injury:

Fill a Claim form as per 'Form A' File a Police FIR, if accident is reported to Police Attach Medical papers, pathology reports, X-ray reports, as applicable For Permanent Disability Claims, attach a disability certificate from any reputed surgeon or Municipal Hospitals.

For Temporary Total Disability Claims, attach a sick leave certificate from Employer Attach the attending Physician's statement as per 'Form D' Bodily Injuries or sickness caused in the following situations are not covered under the policy:

Intentionally Due to Civil War or Foreign War Under the influence of Alcohol /drugs Due to driving two wheeler of more than 150 cc Due to AIDS / HIV Due to active participation in violent labour disturbance / public disorder On duty with military or police force or paramilitary organization Due to participation in hazardous sports

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(2.5) Benefits of general Insurance


1 .Medical and Health insurance: Take care of your medical bills if you need to undergo any medical treatment. Now, people we way about their health. Sidesteps reduces people become buy insurance. 2.Accident Insurance: Takes care of expenses incurred in relation to an accident. For example, compensation to be paid to aggrieved party in case you are the defaulting party, medical bills, cost of repairs etc 3. Motor vehicle/ Auto insurance: Takes care of the cost of repairs to your motor vehicle in case of an accident. Optionally, it also takes care of compensation for damage occurring due to the fault of any other party. Most insurance policies also provide a cover against theft or damage to the motor vehicle. Insurance cover is also available for two/ three wheelers. 4. Travel Insure: It also takes care of compensation for damage occurring due to the fault of any other party. takes care of expenses incurred due to any unforeseen event during travel. 5. Pet insurance: As the name suggests it takes care of certain expenses incurred for your pets. For example, if your pet is ill and you need to spend money at the vet, the insurance company takes care of payments. 6. Home Insurance: It covers expenses incurred in the event of robbery or damage to property in case of fire, earthquake etc. Mortgage insurance is a variant of home insurance that takes care of loan or mortgage payments in the event of a contingency 7. Unemployment Insurance: This type of insurance keeps one financially secure in the event of loss of employment. 8. Personal liability insurance- this kind of insurance is relatively new in the insurance sector. It takes care of any liability arising while conducting ones profession. Doctors, lawyers and other professionals at risk of being sued by their clients may find this insurance very beneficial.

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limitation of general insurance


1. Existence immediately: Indemnity insurance was an agreement by the insurer to confer on the insured a contractual right, which prima facie, came into existence immediately when the loss was suffered by the happening of an event insured against. 2. Position: to be put by the insurer into the same position in which the accused would have had the event not occurred but in no better position. 3. Liability: There was a primary liability, i.e. to indemnify, and a secondary liability i.e. to put the insured in his pre-loss position, either by paying him a specifying amount or it might be in some other manner. But the fact that the insurer had an option as to the way in which he would put the insured into pre-loss position did not mean that he was not liable to indemnify him in one way or another, immediately the loss occurred. The primary liability arises on the happening of the event insured against. 4. Time limit: So, the time ran from the date of the loss and not from the date on which the policy was avoided and any suit filed after that time limit would be barred by limitation.

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(2.5.1) BENEFITS OF HEALTH INSURANCE:


Health Insurance Benefits Investment in health insurance plan is investing for the protection and wellness of you and yours family health, depending upon the plan opted for. The word 'protection', here, means the financial security in case of an unexpected or exigent situation. The word 'wellness' stands for the recommendation or advice offered to clients by experts. In case of exigencies, you can rely on the insurance company to endure you expenses. But, it is always advisable to buy from leader as they are worth relying. Apollo Munich is one of the emerging company in this sector. Their products are well designed to suit you needs. Each of their products has their own health insurance benefits. The Health insurance benefits associated with our health plans are:Easy Health plan

Apollo Munich covers expense for 140 day care procedure, where in-patient hospitalization is for less than 24 hours.

Pre- hospitalization facility provides coverage to charges that you incur 30 days before you are hospitalized. The same can be increased to 60 days, if informed early.

Depending upon the terms and conditions of the policy, post hospitalization offers covers to expenses incurred for specific number of days after discharged from hospitals. It may be for 60 days to 90 days, depending upon the situation and the company norms.

Portability feature gives you an offer to shift from some other company to Apollo Munich along with providing majority of accrued benefits.

If you do not claim for the money in the entire year, you are entitled to get bonus up to some percent, subject to terms and conditions.

Tax benefits Critical illness coverage

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Personal Accidental Plan

In case of death due to an accident, the family members of the insured are entitled for the lump sum payment.

In case of disablement, there is a specific scale, which measures the amount to be paid with respect to the physical loss incurred.

In case of accidental death or permanent disablement, Apollo Munich reimburse the amount incurred in transportation of one immediate family member to the hospital, subject to terms and conditions

The company provides you of the charges spent on the transportation of mortal remains of an insured either to his/her residence or to a burial ground.

In case of an emergency, Apollo Munich provides you the expense incurred on ambulance for transfer of an insured in the nearest hospital.

Transportation of medicines Purchase of blood Travel insurance

Medical services provider referral Arrangement of appointment with local doctors Interpreter referral Arrangement of emergency medical reparation Monitoring of medical conditioning during hospitalization Medical advice on telephone Arrangement of reparation of mortal remains Lost luggage assistance Pre-trip information services Lost passport assistance Embassy referral Emergency cash advances

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Medical Benefits Everybody wants to take advantage of financial and medical benefits by investing in health insurance products. It is indirectly the financial security in case of exigencies. In an emergency situation, you can rely on an insurance company to bear your expenses. But, you require searching for a reputable organization that is worth relying. Apollo Munich, a joint venture between the Apollo group of Hospitals, Asia's largest integrated healthcare group and Munich Health, newest business segment of Germany based Munich Re, is one of the emerging company in this sector. Their policies are intelligently designed to match your needs. Each of their plans has its own benefits. Medical benefits of Easy Health Plan Apollo Munich includes coverage for 140 day care procedure, where in-patient hospitalization is for less than 24 hours, Post- hospitalization expenses for specific number of days, Pre- hospitalization charges, tax benefits, optional critical illness coverage, etc . Medical benefits of Personal Accidental Plan In case of an accident of an insured, Apollo Munich provides coverage in case of disablement, accidental death, emergency ambulance cover, family transportation, transportation of mortal remains, transportation of medicines, purchase of blood, etc. Medical benefits of Travel insurance include medical services provider referral, embassy referral, interpreter referral, lost passport assistance, lost luggage assistance, medical advice on telephone, arrangement of appointment with local doctors, etc.

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(2.5.2)Vehicle insurance benefits both victims and owner

1.What is the importance of motor vehicle insurance? The Motor Vehicles Act, 1988, under section 146 mandates that every vehicle should be compulsorily insured for third party risk. The reason is because of the growing number of accidents that causes fatalities and disability among the victims

2.What are the types of motor vehicle insurance? There are mainly two types of motor vehicle insurance. One is liability/act only policy; such type of insurance covers the risk of all third parties who are injured by the motor vehicle. This includes all third party users knocked down by the vehicle and also occupants of commercial vehicles. And the second type of motor vehicle insurance is comprehensive/package policy, which covers not only the above but also occupants of private vehicles and the insured vehicle itself.

3.Please

throw

light

on

how

insurance

policies

help

victims?

The objective of such insurance policies is to help the victims and the legal representatives of the deceased victims to secure substantial compensation. The compensation can be obtained only if the motor vehicle that was involved in the accident is insured. If the vehicles are not insured, then recovery of the compensation is a distinct possibility. For this reason, vehicle insurance benefitsboth the accident victims as well as the vehicle owners as they are saved of paying any compensation out of their pocket

5. Is it sufficient to just insure the vehicle? Not only should the vehicle be covered by a valid insurance but should also be driven by a person who has a valid licence. In the case of commercial vehicles, validity of permit and fitness should be observed.

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5.How one can file a claim for compensation after accident? After the family suffers from an accident, the law for seeking compensation is set in motion. The necessary documents which are required to file a claim are available with the investigating officers and police machinery. These are certified copies of the police papers which include spotpanchanama, charge sheet and documents of the vehicle involved in the accident. case of a fatal claim, the age and income proof of the victim have to be obtained. In case of injury, the medical papers and employment proof or income of the victim must be shown. The amount of compensation is based upon factors like who deserves the claim, age and income of the deceased.Also the medical expenses and the duration of treatment that a victim undergoes determine the claim. In the case of injuries that could lead to disability and affect the earnings of the victim, the functional disability is considered and the victim is compensated accordingly.

6.WhattodoincaseofCarAccident? Car accident insurance claims begin with road traffic accident. Car accident is a road traffic incident which usually involves one road vehicle colliding with either another vehicle or a road user and which may result in injury or property damage, or possibly death. Accident can be of different nature, like for cars it can be due to Accidents can be very stressful and lead you to trauma. There is the fear about what impact the accident will have on your driving record and insurance. Such thoughts can make it hard to think clearly and respond properly. And if there are injuries, the stress can be amplified. But that's when a clear head and quick action are really crucial. First calm down, call for the police and seek advice from a solicitor, they usually offer good advice when approached by the affected party. There are different types of accident claims like the claims that can be made for road accident.

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The following are the checklist to be kept in mind when preparing to fileroadaccidentclaim: 1. It is best to record and make a note of all the information that you can observe at the place where the accident took place. A keen observation will help you when making the claim. Give all the minute details when you are making the accident claim. 2. Make note of witnesses if there are any. It is helpful to collect the addresses and phone numbers of those who witnessed the accident, such eye witnesses can throw light on the cause of the accident. 3. Take the pictures of the place where the accident took place. Pictures of the accident site will always add weight to the claim. It will prove that you are right and the accident is a result of the negligence of the other party. 4. If you are injured in the accident the nature of the injury has to be recorded. 5. If the police personnel are available in the accident site it is important to collect the case number from them, if a case is registered. Also the insurance details of the other party have to be noted. 6. Calm down and go to the hospital after the accident to get treated and get the doctor's opinion about the nature of the injury. 7. Keep track of all the expenses that you have incurred as a result of the accident. 8. Another important advice on accident claims is the time frame to be kept in mind. The victim has to file the claim within a stipulated time period. Call your insurer or the agent to find more about claim procedure.

Just relax and take some time to file your claim. However it is advisable to watch out the level of loss. If the loss is on the higher side file the claim, but if it is nominal and almost close to the excess you need to pay, then avoid claiming to avail discounts your company will offer in the renewal.

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6. When an Auto Insurance claim is rejected? It is common for Auto insurance companies to reject large number of car insurance claims or to reduce there payment values. Generally they would do this, only if they have genuine reasons. Filing claims and receiving the monetary benefits could be a difficult task. There are several factors that can result in claims rejection: 1. The insurer may come to the conclusion that driver was largely or entirely at fault in case the claim is related to theft from the vehicle or of the vehicle itself. The car insurance policy may contain a clause which invalidates the claim. 2. The insurer may call off the claim if the information provided during application was inaccurate or false. 3. Another reason why a claim may get rejected is that the customer may have taken an insurance policy for a normal private car while it was actually used for commercial purposes. When a customer has a taxi, he should use a policy which is designed for taxis. 4. In case of partial damages, which occur as a result of accidents, a customer often gets claims lesser than demanded because of the depreciation of the vehicle. So, an insurance company puts a car back in the same position as it was prior to the damage of the vehicle. For example, if the engine of a five-year old Maruti car is damaged, the insurance company is liable to pay the customer equivalent to five year old engine. If it is replaced with the new one, then the depreciation is deducted as per the tariffs so as to bridge the gap between the cost of the new engine and five-year old engine. 5. If you are unable to provide receipts to backup claims of theft of items from your vehicle. 6. If the value of the car is considerably less than the money you've invested in restoration or enhancements. In any insurance policy your insurer expects you to disclose all the information that could be of importance to them. You are obliged to do this even if the detail is not requested. This process is known as utmost good faith. Insurance companies often use this extremely wooly approach to sharing information to justify rejecting or downscaling claims. If such situations arise with your car insurance claim, there are certain important points to remember:

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The small print of your policy carries a lot of weight, read it thoroughly before, during and after your claim. Keep the accurate records of conversations and correspondence along with all the receipts backing up your claim. The payout figure announced by your insurance company is not a set in stone. Rather than just accepting the amount on offer you are perfectly entitled and rightful to question the payout. And you can put forward your case for why it should be increased. FirstPartyBenefits First party benefits may cover any funeral costs, accidental death, loss of income or medical expenses incurred in an accident by you and any relatives who share the same residence. Some insurance providers refer to first party benefits as personal injury protection or PIP coverage. You can choose the maximum coverage limits when you purchase your car insurance policy. This type of insurance will cover your medical expenses, regardless of who causes an accident. You should spend time some carefully evaluating the specific type and amount of insurance coverage you require for your particular needs. Each state has its own state of limitation laws concerning the time limit for the combined benefits of first party benefits insurance coverage. Normally, the benefit must not exceed more than 3 years. This means that your insurance provider will not pay any losses or expenses that you have incurred beyond three years from the date of your accident. You should discuss the specific coverage limitations and first party benefits with your insurance agent. Another option is to contact your local insurance regulatory department to learn more about the limitation statues in your state. For example, the state of Pennsylvania is known for requiring drivers to purchase first party benefits. In fact, they are sometimes referred to by insurance companies as Pennsylvania Options. Pennsylvania law requires drivers to purchase at least 5000 of basic first party benefits coverage. However, you can choose to increase the limit to 100,000.Additional Coverage Options

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You can choose to purchase other types of insurance coverage. For example, some auto insurance policies also cover the cost of funeral expenses, accidental death benefits and loss of wages. If you decide to purchase auto insurance coverage for personal injury work loss, you will be reimbursed for any wages you lose because of a motor vehicle accident. Any funeral expenses for your or a family member who dies in a car accident will be covered if you have purchased optional funeral benefits coverage. Other options include accident death which will pay if you or a family member dies in a car accident. You can choose various limits for each type of optional auto insurance coverage.

If you want accidental death benefits, funeral costs and loss of wages covered in addition to your medical expenses, you should purchase combination benefits. You can discuss the maximum limit for this type of auto insurance with your insurance agent. Herearesomecommoninsurancequestions:

1.Whatareaccelerateddeathbenefits? Any insurance policy that offers accelerated death benefits pays partial or full policy death benefits while you are still living. However, there are various conditions that need to be met. For example, you need to provide proof that the policyholder has a terminal illness and is not expected to live 12 months, is living in a nursing home or other long-term care facility or has a specified disease that is life-threatening. For group term life policies, you are limited to receiving an accelerated benefit or 50% of your death benefit or $25,000 whichever is higher. You should also be aware that the proceeds may be taxable and you may no longer be eligible to receive certain government benefits or Medicaid if you accept a payment from an accelerated death benefit policy.

2.Whatareaccidentaldeathbenefits? This type of benefits is paid to the beneficiary of an individual who has purchased a life insurance policy with an accidental death clause or an accidental death insurance policy and who

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dies due to an accident. This type of insurance policy requires an examination into the cause of death to determine if the policyholder has satisfied the specific policys definition of an accidental death. Many accidental death insurance policies will also pay benefits to a policyholder who has suffered a bodily injury that results in certain types of dismemberment. There are certain double or triple indemnity policies that will pay out two or three times higher than the policys face value. You should note that accidental death benefits are not normally paid for injuries or deaths resulting from any type of noncommercial aviation, illegal activities or war. An insurer must meet certain age requirements, and his/her death or dismemberment must occur within a predetermined time period following an accident in order to qualify for accidental death benefits.

3.WhatisanHMO? An HMO or Health Maintenance Organization is one comprised of healthcare facilities and staff that provide a wide range of health services to an enrolled group of individuals for a set amount of prepaid money for a specified time period. The provided health services may include inpatient or outpatient hospitalization, ambulance service, medical consultations and treatments and home health services. They may even include certain pharmacy or dental services. An HMO plan will also cover the cost if you must visit a specialist such as an oncologist if your insurance provider gives you a referral.

limitation of general insurance


1. Existence immediately: Indemnity insurance was an agreement by the insurer to confer on the insured a contractual right, which prima facie, came into existence immediately when the loss was suffered by the happening of an event insured against. 2. Position: to be put by the insurer into the same position in which the accused would have had the event not occurred but in no better position. 3. Liability: There was a primary liability, i.e. to indemnify, and a secondary liability i.e. to put the insured in his pre-loss position, either by paying him a specifying amount or it might be in

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some other manner. But the fact that the insurer had an option as to the way in which he would put the insured into pre-loss position did not mean that he was not liable to indemnify him in one way or another, immediately the loss occurred. The primary liability arises on the happening of the event insured against. 4. Time limit: So, the time ran from the date of the loss and not from the date on which the policy was avoided and any suit filed after that time limit would be barred by limitation.

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(2.5.3): Theft Insurance Benefits:


1.MASTER POLICY: Theft Insurance Summary Description Of Benefits For The Identity Theft Expense Reimbursement Master Policy The Master Policy of Virginia Surety Company Identity Theft Expense Reimbursement Coverage has been issued to: Affinion Group Insurance Trust (the Master Policy Holder), Policy Number: TRIID- 002 underwritten by: Virginia Surety Company, Inc., 1000 Milwaukee Ave., Glenview, IL 60025 (the Company) to provide benefits as described in this Summary. This Summary is provided to inform you that You and Your joint accountholders are entitled to benefits under the Master Policy referenced above.

2. DESCRIPTION: This Summary Description of Benefits does not state all the terms, conditions, and exclusions of the Policy. Your benefits will be subject to all of the terms, conditions, and exclusions of the Master Policy, even if they are not mentioned in this Summary. Loss mean s the Expenses, Lost Wages, and Legal Costs related to Your Identity Theft. Expenses means: Costs You incur for re -filing loan applications for loans, grants, other credit or debit instruments that are rejected solely as a result of the lender receiving incorrect information as the result of Identity Theft;

3. CREDIT: Costs You incur for notarizing affidavits, or other similar documents, long distance telephone calls, and postage which is incurred by You in Your efforts to report an Identity Theft, or amend or rectify records in regard to Your true name or identity as the result of an Identity Theft; Costs You incur to purchase directly a maximum of four (4) credit reports from any of the three major Credit Bureaus (Experian, Equifax, or Transition). The credit reports must be purchased while You are a Member; and may be purchased only after the Identity Theft has occurred and for the purpose of correcting inaccuracies that occur as a result of the Identity Theft.

4.SERVICE: We designate, and related court costs You incur with Our consent; foamy suit brought against You by a creditor or collection agency or other entity acting on behalf of a creditor for non-payment of goods or services or default on a loan as the result of Identity Theft; Removal of any civil judgment wrongfully entered against you as a result of Identity Theft. The Identity Theft Expense Reimbursement Plan coverage does not apply to Any act of fraud, deceit, collusion, dishonesty or criminal act by You or any person acting in concert with You, or by any authorized representative of You, whether acting alone or in collusion with You or others Damages or Losses arising out of any business pursuits, loss of profits, business interruption, loss of business information, or other pecuniary loss; Damages or Losses arising from the theft or unauthorized or illegal use of Your business name, d/b/a/ or any other method of identifying Your business activity;Damages or Losses of any type for which the credit card company, bank, creditor, etc. is legally liable;

5.CREDIT CARD INSURANCE: If a thief steals your credit card, you are only held accountable for the total amount of fraudulent charges if you do not notify the company within 60 days, but often the time window is waived.

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Though many cardholders believe a policy will pay off the card completely, the reality is that most plans only cover the minimum payments. And even if you have the insurance, the company may make it difficult for you to collect. Check with your credit card company for their exact policy 6.CREDIT MONITORING: Credit monitoring was developed before we had identity theft. These services are not designed to prevent fraud or identity theft. Banks and financial institutions lead the consumer to think that it does. A consumer can obtain a free credit report of their own information every twelve months. There are credit monitoring services available to notify you if activity takes place. Make sure the company you choose to use will be checking with all three credit bureau companies or you will still be left vulnerable. Sometimes it takes a month or two before a newly opened account appears on your credit file. Thieves also sell your information to other thieves when they are finished using it.

limitations of theft INSURANCE

LimitationsConcerningLawsuits If you decide to file a lawsuit against a reckless driver or claim monetary damages, you must meet specific criteria concerning your injuries. This is called a lawsuit limitation option. You should consult the following list to see if your injuries meet any of the following criteria. Otherwise, you will not be legally entitled to make a claim or sue another driver: 1: Death Type 2: Dismemberment Type 3: Significant Disfigurement/Scarring Type 4: Displaced Fracture Type 5: Loss of a Fetus Type 6: Permanent Injury Permanent injuries refer to body parts that will never heal sufficiently to enable normal function.

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(2.5.4): Accident Insurance Benefits:


Benefits From Personal Accident Insurance. You already have a life insurance policy, is that enough? Not really. Your regular life insurance policy may not adequately cover you against the risks you face out at work, traveling or even when just staying at home. What you need is Personal Accident Insurance. A personal accident insurance policy is an insurance contract that covers risk arising from accidents, be it at home, or outside. By investing in Accident Insurance, you can protect your family and yourself from the financial concerns such as loss of income and medical expenses that unforeseen accidents lead to. A Personal accident plan would cover the individual and his dependants from the risk of death due to an accident. In addition to that, depending on the plan that is chosen, the personal accident insurance policy would also compensate the insured person for loss of income in case of temporary or permanent disablement. When you are selecting a plan, it is a good idea to ensure that additional benefits include family transportation, transport of imported medicines, purchase of blood, etc. Good Personal Accident Insurance will give you peace of mind that will tide you through, if you meet with any big or small mishap. Without appropriate accident insurance, you may have to undertake significant financial expenditure to get the care that you require.

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Instant Policy, No Medical Test. 24X7,worldwide cover. Offer upto Rs.25 Lakhs cover without income proof. Renew policy anytime, anywhere with InstaRenew. Dedicated Customer Services Helpline - 1860 425 0000. Facility to chat online for information. Easy, ISO certified Claims process. Instant coverage, within 5 minutes. Single policy to cover entire family Policy cover available for 1 year.

Limitation: Every time you drive out in your car, you are taking a risk. A small mishap can leave you holding a bill of a few thousand rupees. The bill could be fatter if someone gets hurt or dies. There is no limit to the compensation that can be claimed. In 2002, a court awarded 12 crore to the family of an NRI doctor killed in an accident.

Thankfully, third-party liability insurance is mandatory for all vehicles and offers unlimited cover for injuries and death caused by the vehicle. Third-party insurance rates were hiked in April this year but are still very low. For less than 1,000 a year, the owner of a midsized car is fully protected against claims by accident victims.

However, this can change soon. The amended Motor Vehicles Act 1988, which has been passed by the Rajya Sabha and will be tabled in the Lok Sabha in the monsoon session of Parliament, places a cap on the liability of insurance companies . The insurer will be liable to pay a maximum compensation of 1 lakh in case of injuries or disability, and 10 lakh in case of death.

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Double whammy for victims Placing a cap on the liability of the insurance company is obviously not in the interest of the victim. Considering the high cost of health care, a compensation of 1 lakh for injuries means just enough to pay for 3-4 days of hospitalisation.

The change could have serious ramifications for car owners as well. "It is not clear whether a victim can claim more than the limit set under the proposed law," says Delhi-based lawyer Navneet Goyal. If he is not satisfied with the compensation awarded by the Motor Accident Claims Tribunal (MACT), an accident victim can appeal in a higher court. In April this year, Goyal won an appeal in the Delhi High Court to enhance the compensation awarded to the widow of an accident victim by the MACT.

Instead of capping the liability, says Goyal, the amendment should give the car owner the option to choose a higher cover. "If 784 a year offers a cover of up to 10 lakh (in case of death), the buyer should be given the option to pay 2,000 a year for a cover of 30 lakh," he says. Is your car insured? The huge compensation paid to victims should be a wake-up call for owners who don't take their vehicle insurance seriously . It is illegal to drive a motor vehicle without third-party cover, and if you forget to renew your car's insurance, you are taking a bigger risk than you can possibly fathom. If the vehicle is involved in a fatal accident, even if someone else was driving it, you will have to pay a compensation from your own pocket. In many cases, even though the victim has been at fault, courts have awarded 40-50 % of the claimed amount as compensation.

What to do in case of a mishap If your car is involved in an accident, the first thing to do is to report the matter to the police. Two cases are filed after an accident. One is a criminal case, which examines the culpability of the driver, while the other is a compensation case filed in the MACT. The outcome of the latter case does not affect the criminal case for negligent driving in any way. Make sure the police report does not twist facts to hurt your interests.

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(2.6) Opportunity and Challenges of Insurance industry in India


The increased growth in the Indian middle income group has posed incremental growth in the insurance sector in India.

The Indian insurance sector is on a bull run. The average Indian nowspends 5.4 times as much on life insurance as what s/he did seven years ago when theindustry was yet to be opened up for private participation.With the largest number of life insurance policies in force in the world, India's insurancesector accounted for 4.1 per cent of GDP in 2006-07, up from 1.2 per cent in 1999-2000,far ahead of China where insurance accounts for just 1.7 per cent of the GDP and eventhe US where insurance penetration stands at 4 per cent of the GDP.Indians are now setting aside a larger chunk of their income on life insurance whenmeasured as a percentage of GDP. They are allocating a small amount of their take-hometo buy insurance products given their rising equated monthly installment (EMI) paymentsfor home mortgage and other loans. The growth in insurance premium collections has spelt an opportunity for the equitymarket too. The industry's investment in the equity market stood at US$ 38.1 billion andthe assets under management were at US$ 152.6 billion as on March 31, 2007.Indian insurance companies recorded a 19.9 per cent growth in premium in dollar terms(adjusted for inflation) in 2006-07, compared to the world market growth rate of 2.9 per cent. This rate of growth of the industry looks particularly impressive when seen againstthe fact that the combined penetration of both life and non-life is less than 2 per cent of the GDP compared to world average of 7.52 per cent. Clearly, the scope for growth isenormous. Nonetheless, the minimal foreign investment allowed within the country increase theneed for partnerships to operate in the Indian environment.

Privatization Of Insurance Essays and Term Papers 1. India-Super Power Clearing of fast track Projects. f) Simplified Tax rules. g) Privatisation of Insurance. This is just a part of the tax reform package offered for our presently... 2. Management Book From Hp ECONOMICS ed Revise INDIAN ECONOMY S.K. Misra & V.K. Puri Part 1 Economic Development: A Theoretical Background Part 2 Structure of the Indian Economy Part 3...

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3. Economy Clearing of fast track Projects. f) Simplified Tax rules. g) Privatisation of Insurance. This is just a part of the tax reform package offered for our presently... 4. Student In High School Teaching Education surrender value and nomination fire insurance - marine insurance - burglary insurance mediclaim policy - privatisation of insurance - meaning need and benefits...

5. Privatisation Of Life Insurance In Context Of Reliance to grow Company Profile 1.2 (a) Name of the firm / company Name- Reliance life insurance co.ltd. Headquarter- Navi Mumbai Website- www.reliancelife.com... 6. Health Privatisation In Australia public and private health care and analyses whether the move of privatisation would be more or less efficient. This is shown through the study of a two-tier health...

7. Insurance Sector Of India in 1971 and it commence business on January 1sst 1973. This millennium has seen insurance come a full circle in a journey extending to nearly 200 years...

8. Mobilisation Of Funds In Insurance Industry 1994 the commends privatisation of the insurance sector and setting up

9.Case Study Of Insurance Services Minister, Mr. Nguyen Duc Binh, Deputy General Director of Post Joint Stock Insurance Company, Mr. Mac Van Tien, visiting professor of National Economics University... 2. Role Of The Insurance Industry In Economic Development we are going to see is the health system in these countries being privatised and individuals buying private health insurance. Currently 47% of the Irish population..

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3. The Privatisation Of The Uk El has taken the form of a new, competitive market. Thus since the beginning of privatisation in the early 1990s the market has seen a transformation from public... 4. Experts Expect Health-Insurance Costs To Keep Soaring the people's willingness to pay for it. (Ch 2 p54-55) The insurance companies can pass on this cost to us because we are in a position that we are willing to pay...

5. Insurance Career a week or even longer (Vault.com, 1999). The median annual earnings of salaried insurance sales workers were $31,500 in 1997 (Abraham & Herman, 1998). The middle... 6. War On Terrorism Is Too Soft To Insure Victory War on terrorism is too soft to insure victory America seems to have learned nothing from Vietnam. A few troops here and there, appeasement of protesters and an...

7. Insurance Law imp car owned by a Mrs Gent, her husband was named diver on the policy. The insurance contract was amended to cover a red alpine on the day it was driven and crashed... 8. Ruff. Insurance prevention engineer who meets with clients and helps to evaluate the risk of insuring a potential client. Once the sale is completed the district manager assigns... 9. Insurance Fraud 200 million and 15 years too late." Works Cited "Frankel Gets 16 Years for Insurance Fraud." Associated Press 2004. . .b Bell, Rachael. "MARTIN FRANKEL: SEX... 10. Term Insurance death. Pay outstanding debts and long-term obligations Consider life insurance so that your loved ones have the money to offset burial costs, credit card debts...

11. Insurance Law In Minnesota the breach. Olson v. Rugloski, 277 N.W.2d 385 (Minn. 1979). Also, insured may recover attorney fees and expenses for successfully bringing an action to enforce duty... 12. Quicken Insurance

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Dean Witter analysts believed that a shift to an Internet distribution channel would save insurance carriers 10 to 15 percent per policy per year over the current...

13. Medical Insurance Availability their children happy, and stay healthy. With numbers of Americans without health insurance rising above 45 million, death rates are climbing. This extreme problem... 14. Auto Insurance important. It helps the policy holder to protect their car from accidents. Automobile insurance covers any possible damage to the policy holder's vehicle. Depending...

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(2.6.1): OPPORTUNITIES & CHALLENGES OF HEALTH:

Market Press Release January 21, 2010 12:27 pm Indi Quest Research Services has released its report titled, Rural Insurance in India Opportunities and Challenges today. The report released, focuses on the potential of life and health insurance in the Indian rural regions. During the past decade India has registered consistent economic growth which has catapulted prosperity in the country. This growth in the Indian markets - broadly divided as urban and rural-have attracted high levels of foreign investments. The investment influx propelled economic growth in the Indian urban regions leading to its rapid growth and subsequent saturation as well. The focus of companies across sectors, thus, is gradually moving to the urban markets counterpart, the Indian rural market.

The rural markets, too have gained from the changes in the economy with the overall per capita income, literacy levels and the introduction of new products and services having increased over the decade. Other triggers to the rural regions economic development include the Indian government policies of loan waivers, employment guarantee schemes and better housing facilities. Amongst the sectors that have commenced their foray in the rural regions insurance reveals a huge potential, with high awareness levels and low penetration of insurance. The report explains the rural regions, its demographics and links these statistics to the opportunities and challenges that life and health insurance display in the region.

The report containing facts, figures and tables describing Bharat- Rural India is an important reference document for strategists and marketing managers in the insurance sector

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AboutIndiQuest Research Services: Indi Quest, is a provider of customized business research and analysis services. Our service offerings cover industries, sectors, companies, and people across all verticals. The products range from market study reports, competitor reports and industry reports to company and people profiles. We also provide bespoke news monitoring services. Indi Quest has a team of skilled and qualified researchers and analysts with experience on diverse projects

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(2.6.2): OPPORTUNITIES & CHALLENGES OF FIRE:


The increased growth in the Indian middle income group has posed incremental growth in the insurance sector in India. The Indian insurance sector is on a bull run. The average Indian nowspends 5.4 times as much on life insurance as what s/he did seven years ago when theindustry was yet to be opened up for private participation.With the largest number of life insurance policies in force in the world, India's insurancesector accounted for 4.1 per cent of GDP in 2006-07, up from 1.2 per cent in 1999-2000,far ahead of China where insurance accounts for just 1.7 per cent of the GDP and eventhe US where insurance penetration stands at 4 per cent of the GDP.Indians are now setting aside a larger chunk of their income on life insurance whenmeasured as a percentage of GDP. They are allocating a small amount of their take-hometo buy insurance products given their rising equated monthly installment (EMI) paymentsfor home mortgage and other loans. The growth in insurance premium collections has spelt an opportunity for the equitymarket too. The industry's investment in the equity market stood at US$ 38.1 billion andthe assets under management were at US$ 152.6 billion as on March 31, 2007.Indian insurance companies recorded a 19.9 per cent growth in premium in dollar terms(adjusted for inflation) in 2006-07, compared to the world market growth rate of 2.9 per cent. This rate of growth of the industry looks particularly impressive when seen againstthe fact that the combined penetration of both life and non-life is less than 2 per cent of the GDP compared to world average of 7.52 per cent. Clearly, the scope for growth isenormous. Nonetheless, the minimal foreign investment allowed within the country increase theneed for partnerships to operate in the Indian environment. Privatization of Fire Insurance Privatization Of Insurance Essays and Term Papers 1. India-Super Power Clearing of fast track Projects. f) Simplified Tax rules. g) Privatisation of Insurance. This is just a part of the tax reform package offered for our presently... 2. Management Book From Hp ECONOMICS ed Revise INDIAN ECONOMY S.K. Misra & V.K. Puri Part 1 Economic Development: A Theoretical Background Part 2 Structure of the Indian Economy Part 3... 3. Economy Clearing of fast track Projects. f) Simplified Tax rules. g) Privatisation of Insurance. This is just a part of the tax reform package offered for our presently... 4. Student In High School Teaching Education surrender value and nomination fire insurance - marine insurance - burglary insurance mediclaim policy - privatisation of insurance - meaning need and benefits...

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5. Privatisation Of Life Insurance In Context Of Reliance to grow Company Profile 1.2 (a) Name of the firm / company Name- Reliance life insurance co.ltd. Headquarter- Navi Mumbai Website- www.reliancelife.com... 6. Health Privatisation In Australia public and private health care and analyses whether the move of privatisation would be more or less efficient. This is shown through the study of a two-tier health... 7. Insurance Sector Of India in 1971 and it commence business on January 1sst 1973. This millennium has seen insurance come a full circle in a journey extending to nearly 200 years... 8. Mobilisation Of Funds In Insurance Industry 1994 the commends privatisation of the insurance sector and setting up

9.Case Study Of Insurance Services Minister, Mr. Nguyen Duc Binh, Deputy General Director of Post Joint Stock Insurance Company, Mr. Mac Van Tien, visiting professor of National Economics University... 15. Role Of The Insurance Industry In Economic Development we are going to see is the health system in these countries being privatised and individuals buying private health insurance. Currently 47% of the Irish population.. . 16. The Privatisation Of The Uk El has taken the form of a new, competitive market. Thus since the beginning of privatisation in the early 1990s the market has seen a transformation from public... 17. Experts Expect Health-Insurance Costs To Keep Soaring the people's willingness to pay for it. (Ch 2 p54-55) The insurance companies can pass on this cost to us because we are in a position that we are willing to pay... 18. Insurance Career a week or even longer (Vault.com, 1999). The median annual earnings of salaried insurance sales workers were $31,500 in 1997 (Abraham & Herman, 1998). The middle... 19. War On Terrorism Is Too Soft To Insure Victory War on terrorism is too soft to insure victory America seems to have learned nothing from Vietnam. A few troops here and there, appeasement of protesters and an... 20. Insurance Law imp car owned by a Mrs Gent, her husband was named diver on the policy. The insurance contract was amended to cover a red alpine on the day it was driven and crashed... 21. Ruff. Insurance prevention engineer who meets with clients and helps to evaluate the risk of insuring a potential client. Once the sale is completed the district manager assigns...

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22. Insurance Fraud 200 million and 15 years too late." Works Cited "Frankel Gets 16 Years for Insurance Fraud." Associated Press 2004. . .b Bell, Rachael. "MARTIN FRANKEL: SEX... 23. Term Insurance death. Pay outstanding debts and long-term obligations Consider life insurance so that your loved ones have the money to offset burial costs, credit card debts...

24. Insurance Law In Minnesota the breach. Olson v. Rugloski, 277 N.W.2d 385 (Minn. 1979). Also, insured may recover attorney fees and expenses for successfully bringing an action to enforce duty... 25. Quicken Insurance Dean Witter analysts believed that a shift to an Internet distribution channel would save insurance carriers 10 to 15 percent per policy per year over the current...

26. Medical Insurance Availability their children happy, and stay healthy. With numbers of Americans without health insurance rising above 45 million, death rates are climbing. This extreme problem... 27. Auto Insurance important. It helps the policy holder to protect their car from accidents. Automobile insurance covers any possible damage to the policy holder's vehicle. Depending...

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(2.6.3): OPPORTUNITIES & CHALLENGES OF VEHICLE:


While most Indian media attention has been focussed on Pranab Mukherjee and what the end of his unproductive time as finance minister might mean for economic progress now that prime minister Manmohan Singh has taken over the job, a significant liberalisation move has been made by the usually moribund A.K.Antony (right), the defence minister, has shied away from as many reforms as he can since he took the job in 2006, slowing down plans that were being backed by his predecessor ironically Mukherjee. But ten days ago he allowed a landmark initiative to go ahead on the modernisation of Indias inefficient and often corrupt defence manufacturing industry when the Indian Army invited a private sector group to compete against the public sector for the design and development of an important internet-based advanced technology project, the Tactical Communication Systems (TCS). The private sector companies involved are Larsen & Toubro (L&T), Tata Power SED and HCL the first two are specialists in high technology precision engineering and HCL is a leader in information technology. They will compete against Bharat Electronics (BEL), a defence public sector corporation (DPSU). This is the Indian private sectors first significant opportunity to show that it has the capability to beat deeply entrenched public sector defence manufacturing companies that often rely on reassembling imported foreign components as high cost Indian products without any significant gain in technological and manufacturing know-how. That practice has become widely publicised in recent months following allegations made by General V.K.Singh, who retired as army chief of staff a month ago, that he was offered a bribe to back excessively over-priced Tatra army trucks . These trucks (no link with the Tata group) have been produced for the past 26 years by the public sector Bharat Earth Movers (BEML) with components imported from a foreign company. The army chief alleged that only 60% of the components had been indigenised in the 26 years even the left-hand drive had not been changed. (The BEML executive chairman has been suspended, and the Ministry of Defence decidedten days ago to end the nominated contract system used, without any competitive tendering, for the Tatra trucks and many other public sector purchases.) The TCS project, which is provisionally estimated to cost Rs10,000 crore ($2bn), is the first make programme under the governments defence procurement procedure. This is aimed at bringing in private sector companies to develop Indias very limited ability to produce advanced defence equipment. The government will cover 80% of development costs and the remaining

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20% will come from the private and public sector companies involved, which have to produce prototypes with at least 30% Indian made components. Public sector pressure Eventually, after more than two years of design, development and testing, it is intended that the government will award the production contract to one of the two contenders. At that stage however, if BEL is not winning, there will be intense pressure to give the public sector a significant role. Indias manufacturing private sector has proved its international competitiveness in the past decade, especially in the auto industry, and some companies like L&T have been working in high technology space and missile manufacturing for decades. But the defence establishment, which includes the defence ministry, parts of the armed forces, the public sector corporations, foreign suppliers and defence agents, all connived to block private sector development. Pressure however is growing and the Planning Commission has recently called for Indian companies to be prime contractors for all major contracts under the make and similar provisions. India has an annual defence budget of $40bn, including capital expenditure of 15bn, and is the worlds biggest importer of defence equipment according to a report earlier this year, accounting for 10% of global arms imports between 2007 and 2011. Its defence imports are officially put at 70% of total purchases, but the actual figure is far higher at maybe around 85% if component imports done by the DPSUs are included. Antony is not a reformer. He has blocked the designation of about 12 big companies, including Tata, L&T, HCL and Mahindra, as defence champions capable of becoming internationally recognised systems integrators. He has apparently been persuaded by small and medium sized companies that they would be left out, whereas they would actually gain as suppliers to the 12. He has also bowed to defence establishment pressure and watered down offset plans that would force foreign suppliers to make up to 40% of their equipment in India. Much as he may have wanted to, he had little opportunity of reversing procedures that led up to the TCS announcement because it would have caused an uproar, especially from the army that wants to break free from the public sector dominance. The battle is far from over however. The next make project in the pipeline is for a futuristic infantry combat vehicle (FICV) where the developers have yet to be named.

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The defence public sector will continue to try to block further private sector advances on this and other projects and will often be successful while Antony is defence minister. And the private sector now has to prove that it can deliver to international standards.

(2.6.4): OPPORTUNITIES & CHALLENGES OF THEFT:


The above two principles can be used to design insurance programs where data are available to develop risk-based rates. During the past 20 years catastrophe models have been constructed with inputs by scientists and engineers to better estimate the likelihood and damages resulting from disasters of different magnitudes and intensities. Although there is uncertainty surrounding these figures, insurers and reinsurers have utilized these models to price the risk and determine how much coverage they want to offer in hazard-prone areas. Premiums Reflecting Risk The first step in developing an insurance program that would adhere to Principle 1 is to estimate the risk-based rates that would apply to different regions of the country. A major issue that needs to be addressed is how to reach agreement on a given risk assessment, and the role that state regulators will play in the process. We believe that regulators should stay out of the rate setting business. If one allows a truly competitive market to operate, then insurers would not engage in price-gouging since they would be undercut by another competing company who would know that it could profitably market policies at a lower price. Regulators would still have an important role to play with respect to other aspects of the insurance operation (e.g. making certain that insurers have sufficient surplus to protect unsuspecting consumers against the possibility of their becoming insolvent following the next severe disaster). Affordability of Coverage Although issues of affordability of insurance have been widely discussed by the media,

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little economic analysis has been done on this issue using empirical data. To address this problem we utilized U.S. Census data to examine how severe this problem actually is today. The data revealed that many homeowners whose income is below the 100 or 200 percent of poverty level actually purchase homeowners insurance while some individuals above this level do not buy this coverage.

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(2.6.5): OPPORTUNITIES & CHALLENGES OF ACCCIDENT:


Unless you are in a no-fault state, you cannot recover money damages unless "liability" exists. The legal term for what you have to show is "negligence," which means carelessness. In the context of driving, examples of negligence are:

not seeing another vehicle that should have been seen following too closely driving too fast for the circumstances (weather, visibility) making an unsafe turn disobeying traffic signals or signs, and talking on the phone/texting while driving

In the most common type of accident, a rear-ender, the tailing driver is usually deemed negligent because he or she wasn't paying sufficient attention and didn't keep a safe distance between vehicles. Hopefully you carried out the proper steps after a car accident. What if the other driver was negligent, but you were too? If the other driver was negligent, but you were also driving in a careless manner, your claim is completely defeated (in some states) or at least reduced (in most states). To understand how the different rules work, and how your claim might be affected, read about Comparative and Contributory Negligence. Extent of your Damages Assuming that liability exists, the only remaining question is, how much are you entitled to recover as compensation for your injuries? There are three commonly used methods of determining accident settlement value in routine car accident cases: 1. Colossus. 2. Multiple of specials. 3. Per diem.

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Colossus

Under this method, to determine accident settlement value, you add these elements of damage together: 1. Medical bills. 2. Lost income. 3. Pain and suffering damages. The insurance company may challenge the amount of medical bills and lost income that you claim. (Learn more about successfully negotiating with insurance adjusters) They may claim that some of your medical bills were for unnecessary treatment or that the charges are unreasonably high, or they may contend that your claim for lost income is excessive or not supported by the medical records. Usually, these defense claims are weak. If you got the treatment recommended by your health care providers and missed only the work that your doctors said you needed to miss, you should be able to recover all of your medical bills and lost income. The much more difficult question to answer is, how much are you entitled to recover for your pain and suffering?

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(2.7) COMPANIES OF GENERAL INSURANCE:


Public Sector: Government of India Fully owned 4 companies:
1. National Insurance Co Ltd (public sector) 2. New India Assurance Co Ltd (public sector) 3. Oriental Insurance Co Ltd (public sector) 4. United India Insurance Co Ltd (public sector)

HDFC ERGO General Insurance:


1. ICICI Lombard 2. IFFCO Tokyo 3. Liberty Videocon General Insurance Co Ltd 4. L & T General Insurance 5. Magma HDI General Insurance Co Ltd 6. Raheja QBE General Insurance 7. Reliance General Insurance 8. Royal Sundaram 9. SBI General Insurance 10. Shriram General Insurance 11. Tata AIG General 12. Universal Sompo General Insurance

Private Sector
1. Apollo Munich Health Insurance 2. Max Bupa Health Insurance 3. Religare Health Insurance Company Ltd 4. Star Health Insurance

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Top Health insurance Companies in India:


Health insurance is no longer a luxury for us, Indians, it has become a need. Even with the increasing disposable incomes, we can no longer afford the hospital expenses for ourselves and our loved ones due to the increasing rate of medical inflation. So we can no longer depend on our savings or generosity of our friends and families or even relax with our companys health insurance, we need an independent health insurance cover for ourselves and for our family. But even with the need for health insurance realized, we find it confusing to find the right health policy for ourselves with so many health insurance companies in the market. We give you the Ten top health insurance companies in India and their popular products This information is just to give you an introduction of the top health insurance companies and name some of their products. To buy a health insurance policy, read about the basics of health insurance like pre-existing illnesses, waiting period, loading, exclusions, how to renew, whom to buy a policy from and how to compare health insurance policies. Only after understanding it, should you go ahead and buy it. 1. Star Health & Allied Insurance Company Limited: Star Health and Allied health Insurance Company Limited (Star Health) is a joint venture between Oman health Insurance Company, ETA Ascon Group and a number of insurance veterans in the country. It is also the first dedicated health insurance company in India. Known for its innovation, Star has some very unique products like Diabetes Safe which is for diabetic patients and Star Net plus which is designed for HIV+ patients. Star Health insurance has an in-house TPA which increases its efficiency in dealing with cashless cases. They also have a unique feature where in customers 2. Max Bupa Health insurance: Max Bupa Health Insurance is a joint venture between Max India Limited and Bupa Group, one of the international healthcare providers. Formed in 2010, Max Bupa has brought changes in the health insurance market in India with innovative and customer friendly products. They have a policy of not loading the customer or handling out no claim bonuses and have a region wise premium. They have no fixed enrollment age which means people of any age group can buy their policies. These policies also have guaranteed renewal which means you wont be denied renewal in your 70s and 80s when you need it most. Their

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Heartbeat. 3.Apollo Munich: Apollo Munich Health Insurance Co. Ltd. is the new name for Apollo DKV Insurance Co. Ltd. which is a partnership between The Apollo Hospitals Group, and Germany based Mun+`ich Res newest business segment, Munich Health. They also bring a change in 911terms of customer friendly features like lifetime renewal and portability benefits for existing policies which means you can buy Apollos policy and get the continuation benefits of your existin g policy. Apollo Munich also covers maternity after a waiting period. 4. Reliance Health insurance: Reliance health insurance is one of the private general insurance companies in India. They also have a few good health insurance products, in their Health wise policy range; critical illnesses are covered as a part of the policy. There is also a choice of reducing waiting period for pre-existing illnesses to 2 years from the industry standard of 4 years. It covers those between the ages of 5-75. 5. ICICI Lombard: ICICI Lombard GIC Ltd. is the largest private sector general insurance company in India. It has some good health insurance plans - like Health Advantage which covers not only hospitalization expenses but also outpatient expenses like dental, upto a limit. Maternity cover is also available under this product. The company has also added Health insurance Guide, an interactive tool to help the customer select a plan to suit his requirements. 6.Bajaj Allianz General Insurance: Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited and Allianz SE. Health insurance policies offered by them include Health Guard (Mediclaim), Silver health (Senior Citizen) and Star package (Family Floater), there are also other plans like Hospital Cash which gives an amount on every day of hospitalization and Critical Illness which gives a lump sum in the event that the insured contracts one of the critical illnesses listed like cancer during the policy period. Bajaj was the first company to come up with a captive TPA with ensuing efficiencies.

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Now for Health Insurance from Public Sector General Insurance Companies, 7.Oriental insurance: One of the four public sector units, Oriental insurance offers a number of health insurance products including Individual med claim, Universal health insurance scheme and family floaters to the customers. Optional benefits like Personal Accident and Life Hardship Survival can be added with the basic health cover to avail extra benefit. Their Happy Family floater is a popular product because it doesnt require medical check-up till the age of 60 (it is mandatory for everyone over the age of 45 to take a health check-up in other policies). 8.United India Insurance: Another of the public sector units, United India health Insurance Company Limited also offers a wide range of health insurance products like Family MedicareGold, Platinum, Senior Citizen, Top-up and Super Top-up. Top-up and Super Top-up products are products which provide additional cover amount if you find your basic cover insufficient. 9. New India Assurance: It is one of the first Indian owned companies when it was formed in 1919. It offers different health insurance products like Medic aim policy, senior citizen Universal health insurance policy. The unique feature of their Medic aim policy is the differential rating for major metros vis--vis other locations. 10National Insurance: Nationals VarsityMed claim is a popular product, it covers everyone from the age from 680 with special features for senior citizens.

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(2.8) COMPONENTS OF GENERAL INSURANCE:


A fire insurance contract has the following characteristics namely: (a) Fire insurance is a personal contract A fire insurance contract does not ensure the safety of the insured property. Its purpose is to see that the insured does not suffer loss by reason of his interest in the insured property. Hence, if his connection with the insured property ceases by being transferred to another person, the contract of insurance also comes to an end. It is not so connected with the subject matter of the insurance as to pass automatically to the new owner to whom the subject is transferred. The contract of fire insurance is thus a mere a personal contract between the insured and the insurer for the payment of money. It can be validly assigned to another only with the consent of the insurer. (b) It is entire and indivisible contract. Where the insurance is of a binding and its contents of stock and machinery, the contract is expressly agreed to be divisible. Thus , where the insured is guilty of breach of duty towards the insurer in respect of one subject matters covered by the policy , the insurer can avoid the contract as a whole and not only in respect of that particular subject mater , unless the right is restricted by the terms of the policy. (c) Cause of fire is immaterial In insuring against fire, the insured wishes to protect him from any loss or detriment which he may suffer upon the occurrence of a fire, however it may be caused. So long as the loss is due to fire within the meaning of the policy, it is immaterial what the cause of fire is, generally. Thus , whether it was because the fire was lighted improperly or was lighted properly but negligently attended to thereafter or whether the fire was caused on account of the negligence of the insured or his servants or strangers is immaterial and the insurer is liable to indemnify the insured. In the absence of fraud, the proximate cause of the loss only is to be looked to.

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The cause of the fire however becomes material to be investigated (1). Where the fire is occasioned not by the negligence of, but by the willful (2) Where the fire is due is to cause falling with the exception in the contract. WHO MAY INSURE AGAINST FIRE? Only those who have insurable interest in a property can take fire insurance thereon. The following are among the class of persons who have been held to possess insurable interest in, property and can insure such property: 1. Owners of property, whether sole, or joint owner, or partner in the firm owning the property. It is not necessary that they should possession also. Thus a lesser and a lessee can both insure it jointly or severely. 2. The vender and purchaser have both rights to insure. The vendor's interest continues until the conveyance is completed and even thereafter, if he has an unpaid vendor's lien over it. 3. The mortgagor and mortgagee have both distinct interests in the mortgaged property and can insure, per Lord Esher M.R."The mortgagee does not claim his interest through the mortgagor , but by virtue of the mortgage which has given him an interest distinct from that of the mortgagor"[3] 4. Trustees are legal owners and beneficiaries the beneficial owners of trust property and each can insure it. 5. Bailees such as carriers, pawnbrokers or warehouse men are responsible for there safety of the property entrusted to them and so can insure it.

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PERSON NOT ENTITLED TO INSURE One who has no insurable interest in a property cannot insure it. For example: 1. An unsecured creditor cannot insure his debtor's property, because his right is only against the debtor personally. He can, however, insure the debtor's life. 2. A shareholder in a company cannot insure the property of the company as he has no insurable interest in any asset of the company even if he is the sole shareholder. As was the case of Macaura v. Northen Assurance Co.Macaura. Because neither as a simple creditor nor as a shareholder had he any insurable interest in it. CONCEPT OF UTMOST FAITH As all contracts of insurance are contracts of utmost good faith, the proposer for fire insurance is also under a positive duty to make a full disclosure of all material facts and not to make any misrepresentations or misdescreptions thereof during the negotiations for obtaining the policy. This duty of utmost good faith applies equally to the insurer and the insured. There must be complete good faith on the part of the assured. This duty to observe utmost good faith is ensured b requiring the proposer to declare that the statements in the proposal form are true, that they shall be the basis of the contract and that any incorrect or false statement therein shall avoid the policy. The insurer can then rely on them to assess the risk and to fix appropriate premium and accept the risk or decline it. The questions in the proposal form for a fire policy are so framed as to get all information which is material to the insurer to know in order to assess the risk and fix the premium, that is, all material facts. Thus the proposer is required too give information relating to: The proposer's name and address and occupation The description of the subject matter to be insured sufficient for the purpose of identifying it including, A description of the locality where it is situatedHow the property is being used, whether for any manufacturing purpose or hazardous trade .etc Whether it has already been insured And also ant personal insurance history including the claims if any made buy the proposer, etc.

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Apart from questions in the proposal form, the proposer should disclose whether questioned or not1. Any information which would indicate the risk of fire to be above normal; 2. Any fact which would indicate that the insurer's liability may be more than normal can be expected such as existence of valuable manuscripts or documents, etc, and 3. Any information bearing upon the more; hazard involved. The proposer is not obliged to disclose1. Information which the insurer may be presumed to know in the ordinary course of his business as an insurer; 2. Facts which tend to show that the risk is lesser than otherwise; 3. Facts as to which information is waived by the insurer; and 4. Facts which need not disclosed in view of a policy condition. Thus, assured is under a solemn obligation to make full disclosure of material facts which may be relevant for the insurer to take into account while deciding whether the proposal should be accepted or not. While making a disclosure of the relevant facts, the DOCTRINE OF PROXIMATE CAUSE Where more perils than one act simultaneously or successively, it will be difficult to assess the relative effect of each peril or pick out one of these as the actual cause of the loss. In such cases, the doctrine of proximate cause helps to determine the actual cause of the loss.

Proximate cause was defined in Pawley v. Scottish Union and National Ins. Co., as "the active, effective cause that sets in motion a train of events which brings about a result without the intervention of any force started and working actively from a new and independent source." It is dominant and effective cause even though it is not the nearest in time. It is therefore necessary

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when a loss occurs to investigate and ascertain what the proximate cause of the loss is in order to determine whether the insurer is liable for the loss.

PROXIMATE CAUSE OF DAMAGE A fire policy covers risks where damage is caused by way of fire. The fire may be caused by lightening, by explosion or implosion. It may be result of riot, strike or on account of any, malicious act. However these factors must ultimately lead to a fire and the fire must be the proximate cause of damage. Therefore, a loss caused by theft of property by militants would not be covered by the fire policy. The view that the loss was covered under the malicious act clause and therefore .the insurer was liable to meet the claim is untenable, because unless and until fire is the proximate cause f damage, no claim under a fire policy would be maintainable.

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(2.8.1): Component so health insurance


When a company insures an individual entity, there are basic legal requirements. Several commonly cited legal principles of insurance include 1. Indemnity the insurance company indemnifies, or compensates, the insured in the case of certain losses only up to the insured's interest. 2. Insurable interest the insured typically must directly suffer from the loss. Insurable interest must exist whether property insurance or insurance on a person is involved. The concept requires that the insured have a "stake" in the loss or damage to the life or property insured. What that "stake" is will be determined by the kind of insurance involved and the nature of the property ownership or relationship between the persons. The requirement of an insurable interest is what distinguishes insurance from gambling. 3. Utmost good faith the insured and the insurer are bound by a good faith bond of honesty and fairness. Material facts must be disclosed. 4. Contribution insurers which have similar obligations to the insured contribute in the indemnification, according to some method. 5. Subrogation the insurance company acquires legal rights to pursue recoveries on behalf of the insured; for example, the insurer may sue those liable for insured's loss. 6. Cause proximate, or proximate cause the cause of loss (the peril) must be covered under the insuring agreement of the policy, and the dominant cause must not be excluded.

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(2.8.2): Component so fire insurance:


A fire insurance contract has the following characteristics namely: (a) Fire insurance is a personal contract A fire insurance contract does not ensure the safety of the insured property. Its purpose is to see that the insured does not suffer loss by reason of his interest in the insured property. Hence, if his connection with the insured property ceases by being transferred to another person, the contract of insurance also comes to an end. It is not so connected with the subject matter of the insurance as to pass automatically to the new owner to whom the subject is transferred. The contract of fire insurance is thus a mere a personal contract between the insured and the insurer for the payment of money. It can be validly assigned to another only with the consent of the insurer. (b) It is entire and indivisible contract. Where the insurance is of a binding and its contents of stock and machinery, the contract is expressly agreed to be divisible. Thus , where the insured is guilty of breach of duty towards the insurer in respect of one subject matters covered by the policy , the insurer can avoid the contract as a whole and not only in respect of that particular subject mater , unless the right is restricted by the terms of the policy. (c) Cause of fire is immaterial In insuring against fire, the insured wishes to protect him from any loss or detriment which he may suffer upon the occurrence of a fire, however it may be caused. So long as the loss is due to fire within the meaning of the policy, it is immaterial what the cause of fire is, generally. Thus , whether it was because the fire was lighted improperly or was lighted properly but negligently attended to thereafter or whether the fire was caused on account of the negligence of the insured or his servants or strangers is immaterial and the insurer is liable to indemnify the insured. In the absence of fraud, the proximate cause of the loss only is to be looked to. The cause of the fire however becomes material to be investigated (1). Where the fire is occasioned not by the negligence of, but by the willful (2) Where the fire is due is to cause falling with the exception in the contract.

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WHO MAY INSURE AGAINST FIRE? Only those who have insurable interest in a property can take fire insurance thereon. The following are among the class of persons who have been held to possess insurable interest in, property and can insure such property: 1. Owners of property, whether sole, or joint owner, or partner in the firm owning the property. It is not necessary that they should possession also. Thus a lesser and a lessee can both insure it jointly or severely. 2. The vender and purchaser have both rights to insure. The vendor's interest continues until the conveyance is completed and even thereafter, if he has an unpaid vendor's lien over it. 3. The mortgagor and mortgagee have both distinct interests in the mortgaged property and can insure, per Lord Esher M.R."The mortgagee does not claim his interest through the mortgagor , but by virtue of the mortgage which has given him an interest distinct from that of the mortgagor 4. Trustees are legal owners and beneficiaries the beneficial owners of trust property and each can insure it. 5. Bailees such as carriers, pawnbrokers or warehouse men are responsible for there safety of the property entrusted to them and so can insure it. PERSON NOT ENTITLED TO INSURE One who has no insurable interest in a property cannot insure it. For example: 1. An unsecured creditor cannot insure his debtor's property, because his right is only against the debtor personally. He can, however, insure the debtor's life. 2. A shareholder in a company cannot insure the property of the company as he has no insurable interest in any asset of the company even if he is the sole shareholder. As was the case of Macaura v. Northen Assurance Co.Macaura. Because neither as a simple creditor nor as a shareholder had he any insurable interest in it.

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CONCEPT OF UTMOST FAITH As all contracts of insurance are contracts of utmost good faith, the proposer for fire insurance is also under a positive duty to make a full disclosure of all material facts and not to make any misrepresentations or misdescreptions thereof during the negotiations for obtaining the policy. This duty of utmost good faith applies equally to the insurer and the insured. There must be complete good faith on the part of the assured. This duty to observe utmost good faith is ensured b requiring the proposer to declare that the statements in the proposal form are true, that they shall be the basis of the contract and that any incorrect or false statement therein shall avoid the policy. The insurer can then rely on them to assess the risk and to fix appropriate premium and accept the risk or decline it. The questions in the proposal form for a fire policy are so framed as to get all information which is material to the insurer to know in order to assess the risk and fix the premium, that is, all material facts. Thus the proposer is required too give information relating to: The proposer's name and address and occupation The description of the subject matter to be insured sufficient for the purpose of identifying it including, A description of the locality where it is situatedHow the property is being used, whether for any manufacturing purpose or hazardous trade .etc Whether it has already been insured And also ant personal insurance history including the claims if any made buy the proposer, etc. Apart from questions in the proposal form, the proposer should disclose whether questioned or not1. Any information which would indicate the risk of fire to be above normal; 2. Any fact which would indicate that the insurer's liability may be more than normal can be expected such as existence of valuable manuscripts or documents, etc, and 3. Any information bearing upon the more; hazard involved.

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The proposer is not obliged to disclose1. Information which the insurer may be presumed to know in the ordinary course of his business as an insurer; 2. Facts which tend to show that the risk is lesser than otherwise; 3. Facts as to which information is waived by the insurer; and 4. Facts which need not disclosed in view of a policy condition. Thus, assured is under a solemn obligation to make full disclosure of material facts which may be relevant for the insurer to take into account while deciding whether the proposal should be accepted or not. While making a disclosure of the relevant facts, the DOCTRINE OF PROXIMATE CAUSE Where more perils than one act simultaneously or successively, it will be difficult to assess the relative effect of each peril or pick out one of these as the actual cause of the loss. In such cases, the doctrine of proximate cause helps to determine the actual cause of the loss.

Proximate cause was defined in Pawley v. Scottish Union and National Ins. Co., as "the active, effective cause that sets in motion a train of events which brings about a result without the intervention of any force started and working actively from a new and independent source." It is dominant and effective cause even though it is not the nearest in time. It is therefore necessary when a loss occurs to investigate and ascertain what the proximate cause of the loss is in order to determine whether the insurer is liable for the loss. PROXIMATE CAUSE OF DAMAGE A fire policy covers risks where damage is caused by way of fire. The fire may be caused by lightening, by explosion or implosion. It may be result of riot, strike or on account of any, malicious act. However these factors must ultimately lead to a fire and the fire must be the proximate cause of damage. Therefore, a loss caused by theft of property by militants would not be covered by the fire policy. The view that the loss was covered under the malicious act clause and therefore .the insurer was liable to meet the claim is untenable, because unless and until fire is the proximate cause f damage, no claim under a fire policy would be maintainable.

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(2.8.3): Component so vehicle insurance


Inexpensive auto insurance may end up costing you much more than you expected if you buy discount car insurance that doesnt provide you with the coverage you require. Its important to understand the basic types of auto insurance coverage that are available before you begin comparing rates from different insurance companies. Knowing what is available will help you choose the coverage the best meets your particular needs.

Before you begin looking for auto insurance discounts, learn what basic and optional insurance coverage options are currently available. For example, do you know if you require bodily injure liability protection as well as auto liability insurance? Do you need to purchase gap auto insurance? You may not have even heard of these auto insurance terms. Do you understand the difference between full coverage auto insurance and comprehensive auto coverage? If you answered no to any of these questions, you need to read on to learn more before rushing out to buy your auto insurance policy.

Many people skip right to the rates offered by an insurance company when they are looking for auto insurance. However, they fail to review the specific coverage options that a particular insurance policy offers. There are many different components for auto insurance coverage.

Before you purchase any type of discount car insurance, be sure you verify the specific minimum auto insurance requirements of your particular state. Every state has different requirements so you dont want to end up purchasing an insurance policy that fails to provide you with sufficient coverage for your area. You can contact your local Department of Motor Vehicles (DMV) or consult the Internet to verify the minimum requirements in your state.

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Auto insurance helps to protect you and your family from any losses you may suffer as a result of a motor vehicle accident caused by another driver. Car insurance also protects you and your family from damage to yourself, your passengers or your property. The following is a list of the basic types of auto insurance available. You can obtain additional information about each type of insurance and its components by conducting some research online. Many websites explain each type of car insurance in detail so you know what type of auto insurance policy to purchase.

(2.8.4): Component so theft insurance


Submit the following: Provide proof that a fraud alert was placed with each major Credit Bureau (Experian, Equifax, Transition, etc.) immediately after discovery of Identity Theft; Copy of a police report from your local jurisdiction; Copy of results of any settlement or denial from credit card companies, banks, creditors, etc. concerning Your Identity Theft claim. Copy of the complaint filed with the Federal Trade Commission government agency. The Administrator may reasonably request you file a report with other agencies, such as the Federal Bureau of Investigation; Copy of all receipts, bills or other records that support Your claim for an Identity Theft Expense Reimbursement Plan payment. These records shall be kept in such manner that We can accurately determine the amount of any Loss. Any other documentation that We may reasonably request to validate a claim.Benefits payable under this Evidence of Coverage for any Loss will be paid upon receipt of acceptable proof of such Loss and all required information necessary to support Your claim. All benefits will be paid to You directly or, in case of Your death, to Your estate. SECONDARY COVERAGE: This coverage is secondary to any applicable insurance or benefit available to you. Coverage is limited to only those eligible amounts not paid by any other provider. If payment is made under this Evidence of Coverage, We are entitled to recover such amounts from other parties or persons. Any person whom receives payment under this coverage must transfer to Us his or her right to recover against any other party or person and must do everything necessary to secure these rights and must do nothing that would jeopardize them, or these rights will be recovered from You. CONCEALMENT OR MISREPRESENTATION: Your coverage shall be void if, whether before or after a Loss, You have concealed or misrepresented any material fact or circumstances concerning this coverage or the subject thereof, or if You commit fraud or swear falsely in connection with any of the foregoing.

LEGAL ACTIONS: No action at law or in equity shall be brought to recover under the Evidence of Coverage prior to expiration of sixty (60) days after proof of Loss has been submitted in accordance with the requirements of the Evidence of Coverage.

(2.8.5): Component so accident insurance


Indian Law on Accident Claims: No Fault Basis and Mandatory Vehicle Insurance Indian law on accident claims pertain mostly to the Motor Vehicle Act. Section 140 to 144 of the Act provides for No Fault Basis, which ensures relief to the families of victims who are killed in hit and run accidents, and where the killer vehicle is not identified. Compensation is granted, only if the following is proved:

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Accident was caused by the offending vehicle. The offending vehicle was insured. Death or injuries were caused by the accident.

Section 145 to 164 of the Act provides for mandatory third party insurance, which is compulsory for a vehicle owner. This means that if you have a vehicle that you use to move in public places, you cannot do so legally unless you have an insurance policy. Typically, your insurance policy papers must always be kept in the car with your car registration and driving licence. Section 146(1) of the Act prohibits a vehicle owner from using the vehicle in a public place without undertaking an insurance policy in compliance with the Act. Further, the Act provides for unlimited liability and limited defense of the insurance companies. Several court judgments passed by the Supreme Court have restricted the legal defense strategies put forward by various insurance companies. Also, the liability to prove the limited defenses rests on the insurance companies. The limited defenses allowed to be made by the insurance companies include:

Use of vehicle for racing and speed testing. Use of vehicle not allowed by permit. Divers without a valid Drivers license or who have been disqualified from owning Drivers license.

Void insurance policy due to non-disclosure of crucial facts.

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(2.9) PRIVATISATION OF GENERAL INSURANCE: (2.9.1) PRIVATISATION OF HEALTH INSURANCE:


Privatization is a key strategy of the ruling classes, nationally and internationally. A whole raft of trade agreements has been put in place to facilitate this strategy. The General Agreement on Trade in Services (GATS) is not designed to improve all our lives but is a set of rules designed to facilitate the corporate takeover of almost every corner of life, including basic needs such as water, education, healthcare, and even the genetic codes for life itself. Sometimes privatization is open, simply involving the selling off of assets to the highest bidder. Sometimes, especially when sensitive areas such as health and education are involved, it is covert. The government introduces private money into the public sector and tries to pretend that this is a good thing, as if the private sector is doing us a favor, rather than chasing a quick profit. The Private Finance Initiative (PFI) and Public Private Partnerships (PPPs, as used in the London Underground) are methods of introducing private finance into the public sector and are central to New Labors privatization strategy in Britain and Northern Ireland. Under the PFI hospitals are built by the private sector and then leased back to the NHS over 20, 25 or 30 years. Paying the debt is deferred - it is paid from annual income each year. We all know that this is more expensive in the long run - who buys on credit if they are in a position to buy outright? Furthermore, PFI schemes always result in fewer beds (in Dudley, England for example, 70 fewer), and in job cuts (1,790 in Dudley, where the staff fought long and hard to resist). The PFI is very attractive to the private sector with its very high rates of return. Total costs (construction costs plus financing costs) in a sample of hospitals built under the PFI are 18-60% higher than construction costs alone. Shareholders in PFI schemes can expect real returns of 15-25% a year. The consortiums involved in these schemes charge the NHS fees equivalent to 11.2-18.5% of construction costs. If the Treasury were to finance new hospitals directly out of its own borrowing, it would pay a real rate of annual interest of 3.0 - 3.5%. The PFI/PPP approach is being exported. The European Union is at the forefront of these developments and has declared two key goals: reducing public expenditure and creating fresh

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"opportunities" for private industry in a recent document ("Making the most of opening of public procurement", 1997). The global financial institutions that have become the target of anti-globalisation protesters in recent years are also busy promoting public - private partnerships across the globe. There are various types of these partnerships, including what are known as design, build, finance and operate (DBFO); build, own, operate and transfer (BOOT), and build, operate and transfer (BOT) schemes. When the IMF and the World Bank enforce their economic dictates on developing countries, they insist that all new public infrastructure developments involve PPPs. As a consequence of the imposition of PPPs, massive cuts take place in the existing public sectors, which means that the education sector and health services are worse now than they were in the 1960s in many developing countries. In 1996 the WTO implemented the "government procurement agreement" which opened up public contracts to international competition and the WTO, IMF and the World Bank all seek to promote "markets in infrastructure provision". The European Commission has used grants to stimulate the development of PPPs. The PPP market in 1994 was worth 720 billion, or 11.5% of the gross national product of 15 member states of the European Union, and has grown since. The European Investment Bank admits that the PPP approach is more expensive than traditional methods of financing, but justifies its adoption by the claims that the private sector is less "risk averse" and hence more efficient. The evidence is that the private sector is very averse to risk indeed. They want to have their cake and eat it. When schemes to provide new computing systems for the national insurance agency and passport agency went belly-up in Britain, the government carried the can, refusing to fire the companies involved even though they were entitled to. The private companies rake in the profit but jump ship when it suits them. The public don't know everything that goes on as agreements are protected by so-called "commercial confidentiality". All governments that accept the restraints of the capitalist system are cutting social spending. Selling off the assets of the state brings a temporary boost to state finances and PPPs and the

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PFI give the appearance of keeping down government borrowing in the short term whilst costing much, much more in the long term. In a further twist in the PFI tale, the private sector consortia involved are lining their pockets even further through "re-financing" deals. Re-financing allows developers to renegotiate the loans they have taken out to build a hospital at a later date (usually when the project is completed and supposed "risks" are past - risks are often overstated in any case). Cheaper loans mean higher returns for shareholders. Is privatization more efficient?: We are told that privatization will lead to more efficient industries and public services and will thus save money. In fact this is seldom the case. The need to generate a profit pushes up costs and governments can invest more cheaply as they can borrow more cheaply. Of course we are expected to believe that privatization is good for the economy as a whole, and thus for all of us. The truth is that it benefits the rich. It is estimated that the private sector in Britain will earn 30 billion a year through the PFI. There are literally thousands of examples of the inefficiencies and the idiocies of the market. In the Dominican Republic electricity prices increased by 51% after privatization. Blackouts are common. The government however is tied into expensive contracts and by 2000 owed the power companies The privatization of British Rail has been an unparalleled disaster. The number of train cancellations trebled between 1996 and 1999. Maintaining the rail system has been contracted out to more than 20,000 companies. The result: the disaster at Potters Bar. When the Conservative government in Ontario, Canada, cut the numbers of water-quality inspection staff and closed government laboratories in favor of private laboratories there was a sharp fall in water quality. As a consequence in the small town of Walkerton, seven people died as result of water contamination. In South Africa 25% of the countrys 44 mill population had their water and electricity disconnected after privatization. The water service in Lee County, Florida, was returned to public

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ownership in 2000 after an audit discovered that it was not being maintained adequately by the private sector. It cost million to rebuild the system. Power companies are enticed into deals by guarantees that the state will purchase electricity at a fixed price for up to 30 years. The privatization of electricity has been fiercely resisted in India where the Maharashtra State Electricity Board (MSEB) has been obliged to hand over hundreds of millions to the crooked Enron Corporation. MSEB has been forced to cut production from its own plants in order to fulfill its obligations to Enron. Hundreds of small businesses have closed because they could not afford Enrons expensive power. As writer and activist Arundhati Roy states "Privatization is presented as being the only alternative to an inefficient, corrupt state. In fact, its not a choice at all..its a mutually profitable business contract between the private company (preferably foreign) and the ruling elite of the third world." The main way in which privatizations cut costs is through job losses. In Mexico, for example, the number of members of the rail workers union fell from 90,000 to 36,000 when the railways were sold off in the 1990s. In Chile, where privatization was pioneered by the Chicago monetarists after Pinchots bloody coup, employment in the public health sector fell from 110,000 to 53,000 between 1973 and 1988. PFI plans for a new hospital in Edinburgh project 18% fewer clinical staff and in North Durham 14% fewer nursing staff. According to one of the parasitic consultancy companies that now hovers around the NHS, "each million pounds of incremental PFI capital cost anything from 100,000 to 179,000 a year, requiring the elimination of four to five jobs to pay for it. An incremental investment of 200 million requires 1,000 job losses, which might be significantly greater than 25% of the work force and is probably only achievable by reducing the number of doctors and nurses, although often these job losses will not be realized within the hospital undertaking the development, but in the local healthcare market" (New church and Company, 1998).

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(2.9.2) Privatizations of vehicle insurance:


How important is privatization in India? How important is privatisation in India ?The first order issue is that of competition policy. When the government hinders competition by blocking entry or FDI, this is deeply damaging. Once competitive conditions are ensured, there are, indeed, benefits from shifting labour and capital to more efficient hands through privatisation, but this is a second order issue. The difficulties of governments that run businesses are well-known. PSUs face little "market discipline". There is neither a fear of bankruptcy, nor are there incentives for efficiency and growth. The government is unable to obtain efficiency in utilising labour and capital; hence the GDP of the country is lowered to the extent that PSUs control labour and capital. When an industry has large PSUs, which are able to sell at low prices because capital is free or because losses are reimbursed by periodic bailouts, investment in that entire industry is contaminated. This was the experience of Japan where the "zombie firms" - loss-making firms that were artificially rescued by the government - contaminated investment in their industries by charging low prices and forcing down the profit rate of the entire industry. Further, in many areas, the government faces conflicts of interest between a regulatory function and an ownership function. As an example, the Ministry of Petroleum crafts policies which cater for the needs of government as owner, which often diverge from what is best for India. There is a fundamental loss of credibility when a government regulator faces PSUs in its sector: there is mistrust in the minds of private investors, who demand very high rates of return on equity in return for bearing regulatory risk. These arguments have led many economists to advocate large-scale privatisation, so as to clear the slate, and get on with the task of building a mature market economy. The role model in this regard is Germany .After the collapse of communism and the unification of East and West Germany, an auction was held for selling off all East German PSUs.

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Negative bids were permitted; i.e. the government was willing to even pay a private manager to take over a loss-making business if no higher bid was to be found. Through this, Germany was able to erase the heritage of socialism, and get on with the task of running an efficient market economy. While such a game plan is entirely feasible in India, the present Parliament desires no privatisation. Does this mean that in the immediate future, progress in economic policy on privatisation must merely wait for the next elections? When we look at various industries in India, the gains from privatisation are quite heterogeneous. In some cases, there are hopelessly loss-making PSUs. These operate in industries where private and foreign firms have been able to come in, and the PSU has been left far behind the standards of quality and price set by the private sector. The PSUs should ideally have been sold off long ago, but today, these firms are irrelevant for the competitive dynamics of the industries that they operate in. The only issue is that of getting the land, the labour and some machinery out of public hands. When privatisation is achieved, India will benefit because the private buyer will produce more GDP using the same resources, and the flow of budgetary support to these firms will cease. The government should be happy to get these firms out of its hands with negative bids. The next and most interesting category comprises industries like telecom and airlines. In these areas, India has witnessed the dramatic benefits that come from the entry of private players. Telecom and airline services in India are now dramatically improved, if not yet up to worldclass, by changing rules in a way that permitted limited entry to domestic and foreign players. The privatisation of VSNL was critically important because it was part of the opening up of the ILD sector to competition: the government would arguably have been more tardy in opening up if it had a vested interest through ownership of VSNL. However, the key innovation, which broke with the stasis of socialism was opening up entry barriers - not privatisation. In both sectors, the full benefits from permitting foreign competitors, which are only present in very muted fashion, remain to be harnessed. While Spicejet is a good airline, there are bigger

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benefits waiting to be obtained by having domestic flights run by Lufthansa and Singapore Airlines. In both sectors, the defining issue in policy is the removal of entry barriers, not privatisation. Looking forward, there is a good chance that in some years, BSNL, MTNL and the merged airline will end up like one of the many defunct PSUs of today. It makes sense for the government to sell today - while the going is good. But the privatisation of these three firms is no longer the most important issue - the further elimination of entry barriers faced by domestic and foreign firms is. What does this tell us about banking? The decline in market shares of PSU banks, while helped along by strikes of PSU bank unions, has proceeded only slowly. This is partly because there is a fundamentally non-level playing field where private and foreign banks have deposit insurance for only Rs 100,000 of deposits while PSU banks have unlimited deposit insurance. This gives one reason in favour of bank privatisation: it is inherently difficult to achieve competitive conditions without privatisation. But equally, there is no industry in India where the licence-permit raj hinders entry more than in the case of banking. At a time when the Indian economy is booming, and every kind of business is being created, the one industry where we see no new firms starting up is banking. This has surely got to do with government restrictions on entry. There is absolutely no industry in India where the opening of branch offices by foreign firms and private firms requires permission from the government. When Ford operates in India, it has to obey rules on FDI, but after that, it never has to go back to the government to take permission to open offices. What is worse, all foreign banks - put together - are given permission to open 12 branches per year in the full country. There is no worse instance where contemporary Indian policy-making is animated by ideas from the 1960s. Motor insurance is the only insurance product in India mandated by law. This means that any one owning a vehicle is bound under the Motor Vehicles Act, 1988 to have a third-party motor insurance policy.

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Clearly then, this product is an important contributor to the business of general insurance companies. As a result of the late privatisation of the insurance sector, there seems to be an underlying rift between public sector and private sector insurance companies. Public sector insurers have had ample time to capture the market, while the late entrants are still struggling to make their mark. One critical issue in the insurance industry is the much debated third-party motor insurance pool. The motor pool, operational since April 2007, is a corpus of premiums gathered from all general insurance companies, and this corpus is managed by the General Insurance Council. As a rule, every player must mandatorily contribute to this pool depending on their market share, irrespective of the underwriting done by them. Although the regulation of tariffs in the general insurance space was withdrawn in 2007, thirdparty motor insurance continues to be regulated. Owing to huge losses in the motor insurance segment, companies have been demanding an increase of around 150 pct in the premiums. However, in April 2011, the regulator rolled out a hike in the range of 10 to 65 pct in an attempt to provide some relief to insurance companies. Even so, private insurers are nearly asphyxiating because of the motor pool. Public insurers like New India Assurance own a greater market share and are alleging that they are being asked to contribute disproportionately to this pool and are knocking on the regulators door to do away with the motor pool altogether. According to the regulator, the ultimate loss ratios for the years 2007-08, 2008-09 and 2009-10 were 172.3 pct, 181.81 pct and 194.15 pct respectively. Against this estimate, the pool had maintained reserves at 126 pct. Earlier this year, the regulator directed all pool members to make a tentative provision of 153 pct for each of the 4 years from 2007-08 to 2010-11. This extra provisioning created a dent in the earnings of general insurance companies. The 10,250 crore rupee hit that these companies took last year, on account of commercial third-party motor pool losses, is still reverberating. According to ASSOCHAM, motor insurance business will continue to remain the largest category, contributing to over 40 pct of industry premiums. By 2020, India will become the third-largest car market globally with over 7 million cars sold annually, which will further drive

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growth in motor insurance segment. Therefore, it is not surprising to see the buzz around this revenue contributor.

Privatization:StartUpStrategy Potential private entrants therefore expect to score in the areas of customer service, speed and flexibility. They point out that their entry will mean better products and choice for the consumer. Critics counter that the benefit will be slim, because new players will concentrate on affluent, urban customers as foreign banks did until recently.

This might seem a logical strategy from the point of view of new players. Start-up costs-such as those of setting up a conventional distribution network-are large and high-end niches offer better returns. However, in the long run 'middle-market' offers the greatest potential as in terms of it is the second largest market in the world. This may still be an urban market but goes beyond the affluent segment.

Insurance, even more than banking, is a volume game. A very exclusive approach is unlikely to provide meaningful numbers. Therefore, private insurers would be best served by a middlemarket approach, targeting customer segments that are currently untapped.

RegulatoryIssues The IRDA Bill lays down that the Indian promoter must dilute the stake in the private insurance firms from 74 per cent to 26 per cent in ten years. The bill stipulates tough solvency margins -Rs 500 million for life insurance firms, Rs 500 million or a sum equivalent to 20 per cent of net premium income for general insurance and Rs 1 billion for reinsurance business.

The insurer has to maintain separate accounts relating to fund of shareholders and policyholders. The funds of policyholders should be retained within the country but does not cover repatriation of profits and dividends. Insurance companies under the new regime will have to have exposure

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to rural and social sectors. Foreign investment in insurance, the bill states, is crucial to financing infrastructure and better insurance cover.

The key to success in opening up the insurance sector in India is regulation. An example of how poor regulation can destroy a market is the mutual fund industry. A combination of improper marketing practice and unfullfilable promises has resulted in a loss of investor faith in that industry. Incidentally, the insurance industry in India itself has gone through the same phase.

One of the reasons for nationalization of the insurance industry (LIC in 1956 and GIC in 1973) was the mismanagement and malpractice of erstwhile private players. But if the statements of IRA officials are anything to go by, the new regulations are expected to be on the right track. N I Rangachary, chairman, IRA, has already provided the time table for the changes once the Bill is passed. The IRA has already indicated that it will have tough norms for new participants.

RepositioningbyNationalizedSector Floodgates of competition opened up by the privatization of insurance industry did throw a challenge to the well-protected nationalized sector and it seems they have picked up the gauntlet. LIC and GIC, both are trying to reposition themselves by having re-engineering done on the structure and operations of their respective organizations.

Life Insurance Corporation is at present going through presentations from top management consultants. These consultants have been asked to narrate their experiences in countries where the insurance sector has been opened up for private competition so that the public sector player can draw lessons. Based on these, LIC will appoint a consultant which can provide them broad terms of reference on what changes are required to tackle the impending competition.

GIC has already identified the areas that need to be activated and given a shape through the four subsidiary companies. Foremost is the area of providing health insurance services. A change in the GIC Act will enable the corporation to float a joint venture company for health insurance. Other areas that the GIC is looking at are savings-linked insurance products and use of alternate

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distribution channels including bancassurance. Also in progress is the co-ordination of all foreign operations of the group.

Even state-owned entities, SBI and UTI have serious plans for insurance sector as the banks have unsurpassed advantages over any other player. The intermediaries are also getting more organized with a little nudging from the IRA. The Reinsurance Consultants Association is planning to convert itself into the Insurance Brokers Association of India in anticipation of the laws being amended to allow insurance broking.

CrossBorderExperience Cross-country experience shows that nowhere in the world has the entry of foreign firms threatened the position of domestic companies. Whether it is Malaysia, where the insurance sector has been open for more than 50 years and foreign companies account for about 10 per cent of market penetration or it is Indonesia, Thailand, China or the Philippines, where the market has been opened more recently, the total market share of foreign companies is less than 10 per cent except in Indonesia where it is about 20 per cent. Closer home, we have the experience of the banking sector where despite the presence of 42 foreign banks, their share in total banking assets is less than 10 per cent. Today hardly 20 per cent of the population in India is insured and insurance premium (life as well as non-life) account for just 2 per cent of GDP as against the G-7 average of 9.2 per cent. Consequently, the fear that new companies will displace public companies is misplaced. There is room for more for not only the existing companies but also for any number of competitors. In China, insurance premium accounted for just over 1 per cent of China's GDP in 1995 but in the four years since the market has been liberalized (albeit partially), spending on insurance has grown at a compound annual rate of 33 per cent. It is not just foreign companies alone that have grown but also the national PICC as well. The story is no different in S Korea. There, the opening of the sector saw the Big Six domestic players, who initially controlled the entire market, increase their business from 7 to 37 trillion won by 1997. Meanwhile foreign companies were not able to capture more than a miniscule 0.7 per cent of the market.

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Future Possibilities(Next5-10Years) Job opportunities are likely to increase manifold. The number of people working in the insurance sector in India is roughly the same as in the UK with a population that is 1/7 India's; the US with a population 1/4 the size of India has nearly 4 times the number. In the emerging markets, the picture is no less encouraging. In S Korea, the no of full time employees more than doubled over a ten year period. Thailand added 50 per cent more jobs in four years. The liberalization of the insurance sector promises several new jobs opportunities for those employed in the finance sector who are equipped with degrees in finance. Finance professionals who had witnessed a slump in the job market would be a much-relieved lot to hear about the privatization of the insurance sector.

Let us look into the type of jobs that will be created once the private players come on the scene. Certainly, it won't be far different from the traditional streams in any other industry. There will be demand for marketing specialists, finance experts, human resource professionals, engineers from diverse streams like the petrochemical and power sectors, systems professionals, statisticians and even medical professionals. Apart from this, there will be high demand for professionals in the streams like Underwriting and claims management and actuarial sciences.

There could be a huge inflow of funds into the country. Given the industry's huge requirement of start-up capital, the initial years after opening up are bound to see a strong inflow of foreign capital. Moreover, given that the break-even, typically, comes much later than in the case of other sectors, odds are that the first remittance of dividend will not happen before a good 10-15 years. In the areas of reinsurance, huge capacity is likely to be created with players like Swiss Re and Munich Re keenly observing the unfolding saga of liberalization of insurance industry in India. Not only the outward reinsurance will reduce, it is bound to attract inward reinsurance from the neighboring countries and regions. If the regulator is forward looking and legislature is

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supportive, this trend may well lead to the creation of a Lloyds like market for the direct as well as reinsurance businesses. However, increased competition is very likely to result in rate reductions in certain classes of business, but in those areas that have so far been cross subsidized, an increase in rates may be possible. Overall, the rate reductions may outweigh the increases, thus bringing down the reinsurance premium volume available. Apart from pure re-insurance activities, which is providing insurance protection, a revolution will come in service related fields like training, seminars, workshops, know-how transfer regarding risk assessment and rating, risk inspections, risk management and devising new policy covers, etc. Also, with more players in the market, there will be significant increase in advertising, brand building, and keen pricing not ridiculous pricing and this will benefit whole lot of ancillary industries. Another effect of de-regulation will be that, projects, especially mega-projects where one needs the capacities of the international re-insurance market, will get exposed to international trends to an even greater extent than is the case today. This will affect rates too. Areas like the personal lines segment, where we also expect to see substantial growth as also new types of covers, would usually not be affected by international trends in the same way as, there is much less need for global re-insurance support. Substantial shift in the distribution of insurance in India is likely to take place. Many of these changes will echo international trends. Worldwide, insurance products move along a continuum from pure service products to pure commodity products. Initially, insurance is seen as a complex product with a high advice and service component. Buyers prefer a face-to-face interaction and place a high premium on brand names and reliability. As products become simpler and awareness increases, they become off-the-shelf, commodity products. Sellers move to remote channels such as the telephone or direct mail. Various intermediaries, not necessarily insurance companies, sell insurance. In the UK for example, retailer Marks & Spencer now sells insurance products. In some countries like Netherlands and Japan, insurance is marketed using post office's distribution channels. At this point, buyers look for low price. Brand loyalty could shift from the insurer to the seller.

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(2.9.3) Privatization and globalization of theft insurance:


Privatization is a key strategy of the ruling classes, nationally and internationally. A whole raft of trade agreements has been put in place to facilitate this strategy. The General Agreement on Trade in Services (GATS) is not designed to improve all our lives but is a set of rules designed to facilitate the corporate takeover of almost every corner of life, including basic needs such as water, education, healthcare, and even the genetic codes for life itself. Sometimes privatization is open, simply involving the selling off of assets to the highest bidder. Sometimes, especially when sensitive areas such as health and education are involved, it is covert. The government introduces private money into the public sector and tries to pretend that this is a good thing, as if the private sector is doing us a favor, rather than chasing a quick profit. The Private Finance Initiative (PFI) and Public Private Partnerships (PPPs, as used in the London Underground) are methods of introducing private finance into the public sector and are central to New Labors privatization strategy in Britain and Northern Ireland. Under the PFI hospitals are built by the private sector and then leased back to the NHS over 20, 25 or 30 years. Paying the debt is deferred - it is paid from annual income each year. We all know that this is more expensive in the long run - who buys on credit if they are in a position to buy outright? Furthermore, PFI schemes always result in fewer beds (in Dudley, England for example, 70 fewer), and in job cuts (1,790 in Dudley, where the staff fought long and hard to resist). The PFI is very attractive to the private sector with its very high rates of return. Total costs (construction costs plus financing costs) in a sample of hospitals built under the PFI are 18-60% higher than construction costs alone. Shareholders in PFI schemes can expect real returns of 15-25% a year. The consortiums involved in these schemes charge the NHS fees equivalent to 11.2-18.5% of construction costs. If the Treasury were to finance new hospitals directly out of its own borrowing, it would pay a real rate of annual interest of 3.0 - 3.5%. The PFI/PPP approach is being exported. The European Union is at the forefront of these developments and has declared two key goals: reducing public expenditure and creating fresh

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"opportunities" for private industry in a recent document ("Making the most of opening of public procurement", 1997). The global financial institutions that have become the target of anti-globalisation protesters in recent years are also busy promoting public - private partnerships across the globe. There are various types of these partnerships, including what are known as design, build, finance and operate (DBFO); build, own, operate and transfer (BOOT), and build, operate and transfer (BOT) schemes. When the IMF and the World Bank enforce their economic dictates on developing countries, they insist that all new public infrastructure developments involve PPPs. As a consequence of the imposition of PPPs, massive cuts take place in the existing public sectors, which means that the education sector and health services are worse now than they were in the 1960s in many developing countries. In 1996 the WTO implemented the "government procurement agreement" which opened up public contracts to international competition and the WTO, IMF and the World Bank all seek to promote "markets in infrastructure provision". The European Commission has used grants to stimulate the development of PPPs. The PPP market in 1994 was worth 720 billion, or 11.5% of the gross national product of 15 member states of the European Union, and has grown since. The European Investment Bank admits that the PPP approach is more expensive than traditional methods of financing, but justifies its adoption by the claims that the private sector is less "risk averse" and hence more efficient. The evidence is that the private sector is very averse to risk indeed. They want to have their cake and eat it. When schemes to provide new computing systems for the national insurance agency and passport agency went belly-up in Britain, the government carried the can, refusing to fire the companies involved even though they were entitled to. The private companies rake in the profit but jump ship when it suits them. The public don't know everything that goes on as agreements are protected by so-called "commercial confidentiality". All governments that accept the restraints of the capitalist system are cutting social spending. Selling off the assets of the state brings a temporary boost to state finances and PPPs and the

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PFI give the appearance of keeping down government borrowing in the short term whilst costing much, much more in the long term. In a further twist in the PFI tale, the private sector consortia involved are lining their pockets even further through "re-financing" deals. Re-financing allows developers to renegotiate the loans they have taken out to build a hospital at a later date (usually when the project is completed and supposed "risks" are past - risks are often overstated in any case). Cheaper loans mean higher returns for shareholders. Is privatization more efficient?: We are told that privatization will lead to more efficient industries and public services and will thus save money. In fact this is seldom the case. The need to generate a profit pushes up costs and governments can invest more cheaply as they can borrow more cheaply. Of course we are expected to believe that privatization is good for the economy as a whole, and thus for all of us. The truth is that it benefits the rich. It is estimated that the private sector in Britain will earn 30 billion a year through the PFI. There are literally thousands of examples of the inefficiencies and the idiocies of the market. In the Dominican Republic electricity prices increased by 51% after privatization. Blackouts are common. The government however is tied into expensive contracts and by 2000 owed the power companies The privatization of British Rail has been an unparalleled disaster. The number of train cancellations trebled between 1996 and 1999. Maintaining the rail system has been contracted out to more than 20,000 companies. The result: the disaster at Potters Bar. When the Conservative government in Ontario, Canada, cut the numbers of water-quality inspection staff and closed government laboratories in favor of private laboratories there was a sharp fall in water quality. As a consequence in the small town of Walkerton, seven people died as result of water contamination. In South Africa 25% of the countrys 44 mill population had their water and electricity disconnected after privatization. The water service in Lee County, Florida, was returned to public

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ownership in 2000 after an audit discovered that it was not being maintained adequately by the private sector. It cost million to rebuild the system. Power companies are enticed into deals by guarantees that the state will purchase electricity at a fixed price for up to 30 years. The privatization of electricity has been fiercely resisted in India where the Maharashtra State Electricity Board (MSEB) has been obliged to hand over hundreds of millions to the crooked Enron Corporation. MSEB has been forced to cut production from its own plants in order to fulfill its obligations to Enron. Hundreds of small businesses have closed because they could not afford Enrons expensive power. As writer and activist Arundhati Roy states "Privatization is presented as being the only alternative to an inefficient, corrupt state. In fact, its not a choice at all..its a mutually profitable business contract between the private company (preferably foreign) and the ruling elite of the third world." The main way in which privatizations cut costs is through job losses. In Mexico, for example, the number of members of the rail workers union fell from 90,000 to 36,000 when the railways were sold off in the 1990s. In Chile, where privatization was pioneered by the Chicago monetarists after Pinchots bloody coup, employment in the public health sector fell from 110,000 to 53,000 between 1973 and 1988. PFI plans for a new hospital in Edinburgh project 18% fewer clinical staff and in North Durham 14% fewer nursing staff. According to one of the parasitic consultancy companies that now hovers around the NHS, "each million pounds of incremental PFI capital cost anything from 100,000 to 179,000 a year, requiring the elimination of four to five jobs to pay for it. An incremental investment of 200 million requires 1,000 job losses, which might be significantly greater than 25% of the work force and is probably only achievable by reducing the number of doctors and nurses, although often these job losses will not be realized within the hospital undertaking the development, but in the local healthcare market" (New church and Company, 1998).

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Privatization is a key strategy of the ruling classes, nationally and internationally. A whole raft of trade agreements has been put in place to facilitate this strategy. The General Agreement on Trade in Services (GATS) is not designed to improve all our lives but is a set of rules designed to facilitate the corporate takeover of almost every corner of life, including basic needs such as water, education, healthcare, and even the genetic codes for life itself. Sometimes privatization is open, simply involving the selling off of assets to the highest bidder. Sometimes, especially when sensitive areas such as health and education are involved, it is covert. The government introduces private money into the public sector and tries to pretend that this is a good thing, as if the private sector is doing us a favor, rather than chasing a quick profit. The Private Finance Initiative (PFI) and Public Private Partnerships (PPPs, as used in the London Underground) are methods of introducing private finance into the public sector and are central to New Labors privatization strategy in Britain and Northern Ireland. Under the PFI hospitals are built by the private sector and then leased back to the NHS over 20, 25 or 30 years. Paying the debt is deferred - it is paid from annual income each year. We all know that this is more expensive in the long run - who buys on credit if they are in a position to buy outright? Furthermore, PFI schemes always result in fewer beds (in Dudley, England for example, 70 fewer), and in job cuts (1,790 in Dudley, where the staff fought long and hard to resist). The PFI is very attractive to the private sector with its very high rates of return. Total costs (construction costs plus financing costs) in a sample of hospitals built under the PFI are 18-60% higher than construction costs alone. Shareholders in PFI schemes can expect real returns of 15-25% a year. The consortiums involved in these schemes charge the NHS fees equivalent to 11.2-18.5% of construction costs. If the Treasury were to finance new hospitals directly out of its own borrowing, it would pay a real rate of annual interest of 3.0 - 3.5%. The PFI/PPP approach is being exported. The European Union is at the forefront of these developments and has declared two key goals: reducing public expenditure and creating fresh "opportunities" for private industry in a recent document ("Making the most of opening of public procurement", 1997).

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The global financial institutions that have become the target of anti-globalisation protesters in recent years are also busy promoting public - private partnerships across the globe. There are various types of these partnerships, including what are known as design, build, finance and operate (DBFO); build, own, operate and transfer (BOOT), and build, operate and transfer (BOT) schemes. When the IMF and the World Bank enforce their economic dictates on developing countries, they insist that all new public infrastructure developments involve PPPs. As a consequence of the imposition of PPPs, massive cuts take place in the existing public sectors, which means that the education sector and health services are worse now than they were in the 1960s in many developing countries. In 1996 the WTO implemented the "government procurement agreement" which opened up public contracts to international competition and the WTO, IMF and the World Bank all seek to promote "markets in infrastructure provision". The European Commission has used grants to stimulate the development of PPPs. The PPP market in 1994 was worth 720 billion, or 11.5% of the gross national product of 15 member states of the European Union, and has grown since. The European Investment Bank admits that the PPP approach is more expensive than traditional methods of financing, but justifies its adoption by the claims that the private sector is less "risk averse" and hence more efficient. The evidence is that the private sector is very averse to risk indeed. They want to have their cake and eat it. When schemes to provide new computing systems for the national insurance agency and passport agency went belly-up in Britain, the government carried the can, refusing to fire the companies involved even though they were entitled to. The private companies rake in the profit but jump ship when it suits them. The public don't know everything that goes on as agreements are protected by so-called "commercial confidentiality". All governments that accept the restraints of the capitalist system are cutting social spending. Selling off the assets of the state brings a temporary boost to state finances and PPPs and the PFI give the appearance of keeping down government borrowing in the short term whilst costing much, much more in the long term.

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In a further twist in the PFI tale, the private sector consortia involved are lining their pockets even further through "re-financing" deals. Re-financing allows developers to renegotiate the loans they have taken out to build a hospital at a later date (usually when the project is completed and supposed "risks" are past - risks are often overstated in any case). Cheaper loans mean higher returns for shareholders. Is privatization more efficient?: We are told that privatization will lead to more efficient industries and public services and will thus save money. In fact this is seldom the case. The need to generate a profit pushes up costs and governments can invest more cheaply as they can borrow more cheaply. Of course we are expected to believe that privatization is good for the economy as a whole, and thus for all of us. The truth is that it benefits the rich. It is estimated that the private sector in Britain will earn 30 billion a year through the PFI. There are literally thousands of examples of the inefficiencies and the idiocies of the market. In the Dominican Republic electricity prices increased by 51% after privatization. Blackouts are common. The government however is tied into expensive contracts and by 2000 owed the power companies The privatization of British Rail has been an unparalleled disaster. The number of train cancellations trebled between 1996 and 1999. Maintaining the rail system has been contracted out to more than 20,000 companies. The result: the disaster at Potters Bar. When the Conservative government in Ontario, Canada, cut the numbers of water-quality inspection staff and closed government laboratories in favor of private laboratories there was a sharp fall in water quality. As a consequence in the small town of Walkerton, seven people died as result of water contamination. In South Africa 25% of the countrys 44 mill population had their water and electricity disconnected after privatization. The water service in Lee County, Florida, was returned to public ownership in 2000 after an audit discovered that it was not being maintained adequately by the private sector. It cost million to rebuild the system.

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Power companies are enticed into deals by guarantees that the state will purchase electricity at a fixed price for up to 30 years. The privatization of electricity has been fiercely resisted in India where the Maharashtra State Electricity Board (MSEB) has been obliged to hand over hundreds of millions to the crooked Enron Corporation. MSEB has been forced to cut production from its own plants in order to fulfill its obligations to Enron. Hundreds of small businesses have closed because they could not afford Enrons expensive power. As writer and activist Arundhati Roy states "Privatization is presented as being the only alternative to an inefficient, corrupt state. In fact, its not a choice at all..its a mutually profitable business contract between the private company (preferably foreign) and the ruling elite of the third world." The main way in which privatizations cut costs is through job losses. In Mexico, for example, the number of members of the rail workers union fell from 90,000 to 36,000 when the railways were sold off in the 1990s. In Chile, where privatization was pioneered by the Chicago monetarists after Pinchots bloody coup, employment in the public health sector fell from 110,000 to 53,000 between 1973 and 1988. PFI plans for a new hospital in Edinburgh project 18% fewer clinical staff and in North Durham 14% fewer nursing staff. According to one of the parasitic consultancy companies that now hovers around the NHS, "each million pounds of incremental PFI capital cost anything from 100,000 to 179,000 a year, requiring the elimination of four to five jobs to pay for it. An incremental investment of 200 million requires 1,000 job losses, which might be significantly greater than 25% of the work force and is probably only achievable by reducing the number of doctors and nurses, although often these job losses will not be realized within the hospital undertaking the development, but in the local healthcare market" (New church and Company, 1998).

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(2.9.4) Privatization and globalization of accident insurance:


Privatization through sale of state property or transfer of ownership, which is the most prevalent and simplest method of privatization meaning transfer of government properties to private sector. Privatization from below (releasing and deregulation), which provides the possibility of private sector cooperation in those activities which were previously public. This leads to competition between actors of private and public sectors and thereby it can be prior to privatization. So, the public sector is urged to gain a favourable level of efficiency to survive in the market. Releasing can be a good alternative for privatization, such as sale of state properties, since it can lead to competition with lower costs. It can also be done in cases such as entering to market and establishing new firm in the industry, transacting in the market, exporting an importing products, deregulating in firms establishment and their activities, and release of financial and employment system and other relevant markets. Havrylyshyn and McGettigan (2000) stress the importance of this type of privatization in the transition economies. Privatization plan in Iran, initiated from 2000, can be considered as privatization from below which is known as release of insurance industry. This method is usually applied in industries which are completely in hands of government and permits private sector to enter the industry leading to competition in market. This method, at first, creates quantitative competition in the market and then extends increasingly the price competition in markets related to insurance companies such as labour, finance and properties. Consequently, it influences the private and even public insurance companies performance and total insurance market. The privatization through sale of public insurance companies has also initiated from 2009 and continues till now.

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2. PRIVATRIZATION ROLE IN IRAN INSURANCE INDUSTRY PERFORMANCE The privatization method in Iran, started since 2000, was privatization from below but privatization through sale of state property or ownership transfer has initiated from 2009. Now, it is possible to study the effects of these two methods of privatization on the industry performance. A good measure to show privatization from below degree in insurance industry is the private insurance companies share out of total insurance premiums in the insurance market. The private insurance companies launch their businesses after the enactment of private insurance companies Rule in 2002. At the first year, these companies gained 99 billion Rials premiums consisting 1 percent of total market premiums. But this share increased in next years and reached up to 22 percent of insurance market share in 2007 (Table 1). 3. PRIVATIZATION EFFECT ON INSURANCE ACTIVITIES VOLUME Insurance activities volume can be showed by various indicators. All indicators show a remarkable growth in insurance activities volume since privatization enactment in 2000. Insurance activities share in Gross Domestic Product reached to 0.46 in 2007 while it was only 0.25 in 2002. The produced premium share to Nominal Gross Domestic Product was 1 percent in 2002 and reached to 1.17 in 2007. Iran insurance premium per capita was only 17.3 in 2002 and increased up 4. PRIVATIZATION EFFECT ON DIVERSITY OF PRODUCTS IN INSURANCE INDUSTRY Another effect of privatization is offering new products into insurance market which determines diversification in insurance industry. In the past years, Iran public insurance companies were operating in traditional and concentrated form of business by offering products like fire, car and

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third party insurance covers. While, recently, covers such as credit, oil and energy insurances received more importance than before 2001. Additionally, 17 new liability, 4 new life, 6 new health plus rent and train insurances and many other ones have also added to previous insurance covers (Iran Central Insurance, 2009: 87). The diversity of insurance activities can be analyzed by insurance activities concentration index. 5. PRIVATIZATION FROM BELOW EFFECT ON PUBLIC INSURANCE COMPANIES Privatization from below not only influences total amount of insurance market but also it impacts public insurance companies performance through increase in competition. In this section we evaluate the privatization from below effect on insurance companies performance, started at 2000, by applying some performance evaluation measures and available statistics (Table 5). The coverage ratio of public insurance companies is calculated based on current assets and investment. Comparing to 2001, this measure increased in 2007 for Iran and Dana Insurance Companies and decreased for Asia and Alborz Companies. The coverage ratio in all public insurance companies has increased from 85% to 99% during the period studied. It indicates that the index trend is along with insurance industry privatization. Total income to total cost ratio of public insurance companies shows the income these companies receive against their costs which can be assumed as insurance companies profitability. The computations indicate that this ratio has decreased in all companies except Iran Insurance Company in 2007, comparing to 2001. Therefore, it demonstrates that with the presence of private insurance companies in the market, public insurance companies profitability decreased. Total profit to total income ratio involves profitability of all insurance activities and determines the companys turnover

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CH:3 Introduction Of Industrial Over view Insurance 3.1 INDUSRTY PROFILE


Job growth in this large industry will be limited by corporate downsizing, new technology, and increasing direct mail, telephone, and Internet sales, but numerous job openings will arise from the need to replace workers who leave or retire. Growing areas of the insurance industry are medical services and health insurance, and its expansion into other financial services, such as securities and mutual funds. Jobs in office and administrative occupations usually may be entered with a high school diploma, but employers prefer college graduates for sales, managerial, and professional jobs.

The insurance industry consists mainly of insurance carriers (or insurers) and insurance agencies and brokerages. In general, insurance carriers are large companies that provide insurance and assume the risks covered by the policy. Insurance agencies and brokerages sell insurance policies for the carriers. While some of these establishments are directly affiliated with a particular insurer and sell only that carriers policies, many are independent and are thus free to market the policies of a variety of insurance carriers. In addition to supporting these two primary

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components, the insurance industry includes establishments that provide other insurance-related services, such as claims adjustment or third-party administration of insurance and pension funds. These other insurance industry establishments also include a number of independent organizations that provide a wide array of insurance-related services to carriers and their clients. One such service is the processing of claims forms for medical practitioners. Other services include loss prevention and risk management. Also, insurance companies sometimes hire independent claims adjusters to investigate accidents and claims for property damage and to assign a dollar estimate to the claim.

Insurance carriers assume the risk associated with annuities and insurance policies and assign premiums to be paid for the policies. In the policy, the carrier states the length and conditions of the agreement, exactly which losses it will provide compensation for, and how much will be awarded. The premium charged for the policy is based primarily on the amount to be awarded in case of loss, as well as the likelihood that the insurance carrier will actually have to pay. In order to be able to compensate policyholders for their losses, insurance companies invest the money they receive in premiums, building up a portfolio of financial assets and income-producing real estate which can then be used to pay off any future claims that may be brought. There are two basic types of insurance carriers: primary and reinsurance. Primary carriers are responsible for the initial underwriting of insurance policies and annuities, while reinsurance carriers assume all or part of the risk associated with the existing insurance policies originally underwritten by other insurance carriers.

Primary insurance carriers offer a variety of insurance policies. Life insurance provides financial protection to beneficiariesusually spouses and dependent childrenupon the death of the insured. Disability insurance supplies a preset income to an insured person who is unable to work due to injury or illness, and health insurance pays the expenses resulting from accidents and illness. An annuity (a contract or a group of contracts that furnishes a periodic income at regular intervals for a specified period) provides a steady income during retirement for the remainder of ones life. Property-casualty insurance protects against loss or damage to property resulting from hazards such as fire, theft, and natural disasters. Liability insurance shields policyholders from financial responsibility for injuries to others or for damage to other peoples property. Most policies, such as automobile and homeowners insurance, combine both property-casualty and liability coverage. Companies that underwrite this kind of insurance are called property-casualty carriers. Some insurance policies cover groups of people, ranging from a few to thousands of individuals. These policies usually are issued to employers for the benefit of their employees or to unions, professional associations, or other membership organizations for the benefit of their members. Among the most common policies of this nature are group life and health plans. Insurance carriers also underwrite a variety of specialized types of insurance, such as real-estate title insurance, employee surety and fidelity bonding, and medical malpractice insurance.

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General insurance industry records 24.1% growth The general insurance industry has recorded a 24.1% increase in premium collection at Rs 16,577.7 crore in the first eight months of the fiscal against Rs 13,350.1 crore during same period previous year, according to data compiled by Insurance Regulatory and Development Authority (IRDA).

The market share of new players continued to stay at 35% in the current fiscal, up from 26% last year. While 35% was contributed by the eight private players and remaining 65% came from the four public sector players New India, Oriental Insurance, National Insurance and United India.

ICICI Lombard grew premium collection by over 90% to Rs 2,078.6 crore in the AprilNovember period followed by Bajaj Allianz General Insurance, which saw 35.3% increase in premium income at Rs 1,158.8 crore.

Market leader New India grew business by 10% to Rs 3,337.1 crore in April-November, the highest premium collection by any company during the period. Clocking 13.6% growth, Oriental Insurance collected Rs 2,647.8 crore in premium, while National Insurance witnessed a mere 5.06% growth in business at Rs 2,311.6 crore during the period. United India increased premium collection by 12.3% to Rs 2,093 crore. Among the private players, Reliance General posted a record growth in premium of 419.53% at Rs 100.25 crore during the period under review.

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3.1.1. MAJOR PLAYERS OF GENERAL INSURANCE INDUSTRY:


ICICI Lombard General Insurance Company Limited A joint venture between the second largest bank in India ICICI Bank Ltd and Canada based Fairfax Financial Holdings Limited, ICICI Lombard is the number one private insurance company in India. It started general insurance operations in August 2001 and was the first general insurance company to be awarded ISO 9001:2000. The company has earned quite a few awards for its services and customer relationship. It is also one of the top three companies to have received the General Insurance Company of the Year at the 10th Asia Insurance Industry Awards. The different plans they offer are in:

Auto Insurance Travel Insurance Health Insurance Personal Accident Insurance Householder Insurance

Tata AIG General Insurance Company Limited This is joint venture between two power house- Tata Sons and American International Group Inc. (AIG). Founded on Jan 22 in the year 2001, 74 per cent stake belongs to the Tata Group and AIG hold 26 percent of the company stakes. Having got the strength from both the organisations, Tata AIG caters to a range of categories including travel, energy, marine, property, automobile, home, personal accident etc for individuals, small businesses and big corporate houses. They offer plans in:

Maharaksha Critical Illnes Insurance Personal Accident Insurance Mediclaim Insurance Shopkeepers Insurance Healthcare Auto Insurance Hospital Cash Insurance Secured Future Plan

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Travel Insurance Householder Insurance Hospital Care

Bajaj Allianz General Insurance Company Limited Bajaj Auto Limited and Allianz AG of Germany came together on 2nd May 2001 to form this general insurance company in India. 74% of the joint venture is owned by Bajaj Auto while the rest of the shares lie with Allianz. The company is one of the leading private insurer in the country and offers services in General Insurance, Health Insurance and Risk Management. With a capital base of Rs. 147 crores, the company has marked a niche for itself. They offer plans in:

Householder Insurance Personal Accident Insurance Travel Insurance Health Insurance Auto Insurance

IFFCO Tokio General Insurance Known for delivering creative solutions to its customers, IFFCO Tokio General Insurance is reckoned as a one of the best general insurance company in the country. It is known for providing quality service at affordable rates. The company has a deep knowledge of IFFCO and is the first company to underwrite mega policies for a fertilizer and automobile clients. The company has been regarded as a customer- centric and people friendly organisation. They offer plans in:

Health Insurance Householder Insurance Travel Insurance Personal Accident Insurance

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The Oriental Insurance Company Limited Supported by General Insurance Corporation (GIC) of India, Oriental Insurance Company started is one of the oldest companies in India. It started out in 1947 and has been catering to all sectors of society. The company believes in providing insurance to the community at a reasonable cost. Special covers are provided for large projects such as power plants, steel plants and chemical plants. The plan offered are provided in:

Shopkeepers Insurance Health Insurance Auto Insurance Travel Insurance Householder Insurance Personal Accident Insurance

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3.1.2 TURNOVER OF INDUSTRY:


General insurance turnover crosses RS. 7 billion List of top 10 non life insurance company Name Everest insurance NLG insurance Shikhar insurance everest insurance Himalayan general insurance Rastriya bema sansthan Alliance insurance National insurance Nepal insurance The oriental insurance Collection of premium RS. 738.57 m RS. 700.46 m RS. 625.77 m RS. 579.96 m RS. 548.99 m RS. 548.69 m RS. 440.31 m RS. 401.87 m RS. 397.11 m RS. 361.37 m

Even though insurance industry continue to suffer from low awareness of general public and apathy of even the informed mass to safeguard their hard earned property , country s non life insurance industry recorded a growth of 8.4 percent in 2010/11 , shows the latest insurance board (IB) , the insurance sector regulator. The entire non life insurance industry comprising of a total of 17 general insurance companies collected premium worth RS.7.17 billion during the period. Everest insurance has clinched the title of the largest non life insurance company in the country in terms of premium collection, shows the IB report. The company collected premium worth RS. 738.57 million During the year, the revenue collection had gone up largely because of the contribution made by engineering portfolio, sudimana upadhyaya , assistant general manager of everest insurance , told republica referring to the new client, melamachi water supply project. He, however, is not expecting similar growth of 8.4 %. Because of this mismatch, we cant expect much growth, as everyone is trying to grape a piece from the same pie which has not growth significantly. he said. Besides, we are not planning to introduce any unique product this year, which could have widened our clientele base. Second in the list of non life insurance companies is NLG insurance company. It collected premium worth RS. 700.4 million last fiscal year a rise of 25% sunil ballav pant , marketing head of NLG insurance, told , republica that government decision to make third party insurance mandatory played a vital role in giving a boost to the companies revenue. Under the third party insurance policy, which came into effect in September 2009, insurance company collect a premium of as little as RS.1000 from vehicle owners and provide coverage of up to RS. 16 million. The amount is paid in case motorist damage property , or injure or kill people other than those on or inside the vehicle during road mishaps. This policy helped raise NLG insurance s

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vehicle insurance premium collection to RS.537.42 million in the last fiscal year, making it the top vehicle insurer in the country. Third in the list of top non life insurance companies is shikhar insurance company. The company collected a premium of RS. 625.77 million last fiscal year an increment of 4% . like, NLG , shikhars revenue also went up due to contribution made by vehicle portfolio . the company sold vehicle insurance premium worth RS. 225.57 million during the period. Among others, sagarmatha insurance company generated revenue of RS. 579.96 million becoming fourth largest non life insurance company in term of premium collection. Himalayan general insurance company with revenue of RS.548.99 million stood in the fifth pension , followed by state owned rastriya beema sansthan , which collected premium worth RS. 548.69 million.

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3.1.3. Market share


India insurance industry - market share of leading companies The following table shows the market share of top insurers in India in the period till April 2011: Company LIC ICICI SBI Bajaj Reliance HDFC Birla Max New York Tata Kotak Others Approximate market share 50% 10% 5% 4% 5% 6% 4% 3% 2% 2% 8%

PSU's still retain 59% market share of Indian health insurance market (2010-11) of Rs.11145 crores sThe health insurance figures for the year 2010-11 are available and PSU's have achieved premium figure of Rs.6578.64 crores vs Rs.4949.67 crores(2009-10). This is 59.02% market share vs 59.09% market share which was achieved during last year. Health Insurance Premium of Indian Insurance Companies 2010-11 vs 2009-2010

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You will notice that every company has shown growth in business with exception of Chola. Growth during the year of this portfolio is 33.05% and 5 top insurance companies and their market share are:

ICICI Lombard deserves appreciation for taking up 4th position as a result Oriental is now at 5th position in the list. Star Health has crossed figure of Rs.1000 crores by touching figure of Rs.1232.44 crores. Our comment is- health insurance is the fastest growing segment but even then a lot is to be achieved as we have large population and it needs to be covered

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Accident and health insurance The Indian accident and health insurance market is forecast to grow at an annual rate of 22% over the next five years, aided by increasing healthcare expenditure, economic growth, and changing demographics. At the same time, a decrease in capital requirements will create an attractive market for new entrants into the sector, according to a report by BRICdata which provides emerging market intelligence.

The introduction of new distribution channels is another key factor in the growth in the overall volume of new policies. The increasing penetration of major insurance companies and banks selling insurance policies to second- and third-tier cities in India will lead too to an increase in accident and health insurance policy volumes in the country over the next five years. However, big challenges confront insurers. The key entry barrier into the market is brand recognition. Insurers are thus expected to work towards aligning with stronger brands, both domestic and foreign, to create opportunities for collaborations or joint ventures. Other major challenges include low awareness of personal accident and health insurance, low penetration in rural areas, a lack of coverage for many existing diseases, and the ineffective distribution model in the country.

While public-sector insurance providers currently constitute the majority of the market, private participants will continue to increase their market share over the next five years. At present, four public companies hold more than 50% of the market share in the personal accident and health insurance market in terms of premiums. The Indian accident and health insurance market recorded steady growth over the reports review period, withstanding the ill effects of global economic slowdown. Growth is expected to continue, with a forecast 22% annual growth over the next five years, and a decrease in capital requirements will create an attractive market for new entrants into the market. While public-sector insurance providers constitute the majority of the market, private participants will continue to increase their market share in the forecast period. The introduction of new distribution channels is another key factor in the growth in the overall volume of new policies. Four public companies hold more than 50% of the market share in the personal accident and health insurance market, although this dominance will be severely challenged by private companies in the forecast period. The key entry barrier into the market is brand recognition, and

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companies are expected to work towards aligning with stronger brands, both domestic and foreign, to create opportunities for collaborations or joint ventures.

The report provides top-level market analysis, information and insights of the Indian personal accident and health insurance industry, including: The Indian personal accident and health insurance industrys growth prospects by product category and customer segmentThe various distribution channels in the Indian personal accident and health insurance industry The competitive landscape in the personal accident and health insurance industry A description of the personal accident and health reinsurance market in India This report provides a comprehensive analysis of the personal accident and health insurance market in India: - It provides historical values for Indias personal accident and health insurance industry for the reports 20062010 review period and forecast figures for the 20112015 forecast period - It offers a detailed analysis of the key sub-segments in Indias personal accident and health insurance industry, along with market forecasts until 2015 - It covers an exhaustive list of parameters, including written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, frauds and crimes, total assets, total investment income and retentions

It analyses the various distribution channels for personal accident and health insurance products in India Using Porters industry-standard Five Forces analysis, it details the competitive landscape in India for the personal accident and health insurance business It provides a detailed analysis of the reinsurance market in India and its growth prospects It profiles the top personal accident and health insurance companies in India, and outlines the key regulations affecting them

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Reasons To Buy

Make strategic business decisions using top-level historic and forecast market data related to the Indian personal accident and health insurance industry and each sector within it Understand the demand-side dynamics, key market trends and growth opportunities within the Indian personal accident and health insurance industry

Assess the competitive dynamics in the personal accident and health insurance industry, along with the reinsurance segment Identify the growth opportunities and industry dynamics within key product categories Gain insights into key regulations governing the Indian insurance industry and its impact on companies and the industry's future Key Highlights - The growth in the Indian personal accident and health insurance market can be attributed to increasing healthcare expenditure, economic growth, and changing demographics - The Indian personal accident and health insurance market has a significant number of publicsector insurers. Private accident and health insurers account for less than 50% of the total accident and health insurance written premium - During the forecast period, public-sector insurers are expected to retain a major share of the market, while the private accident and health insurers are expected to increase their market share gradually in India - The increasing penetration of major insurance companies and banks selling insurance policies to second- and third-tier cities in India will lead to an increase in accident and health insurance policy volumes in India during the forecast period - Key challenges include low awareness of personal accident and health insurance, low penetration in rural areas, a lack of coverage for many existing diseases, and the ineffective distribution model in the country

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3.2 PEST ANALYSIS:


A PEST is an analysis of external macro environment that effects all firm. PEST is acronym of Political, Economical, Social and Technological factor of external macro environment. POLITICAL FACTOR: The political environment includes such as the characteristics and policies of the political parties, the nature of constitution and government system and the government environment encompassing the economic and business policies and regulations. These factor may vary very considerably between different nations, between different provinces of same nations and also over time. In our research, in insurance sector government policy is stable so it is a favorable for insurance sector. During our research there is no any change in government so it is not affect to insurance sector.

Economic factor:
Business fortunes and strategies are influenced by the economic characteristics and economic policy dimensions. The economic environment includes the structure and nature of economy,the stage of development of the economy, economic resources, the level of income, the distribution of income and assets, global economic linkages, economic policies etc. In our research, insurance an other service sector are fastest growing sector. The service sector now contribute nearly 70% of the world GDP. Now a days public expenditure towards insurance so insurance sector is develop. Recently bank rate reduced by 0.25% so get loan from bank become reasonable it is a benefit to insurance sector to get loan from bank & also in investment. In india income level of people is increase so people invest money in insurance.

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SOCIAL FACTORS: According to the modern view of business, its activities and attitudes are subject to socital judgments , which may have far reaching implications. A business enterprise shall make profit only by accomplishing the socially accepted goals and by satisfying society. Business is an integral part of the social system and it is influenced by other element of society which in turn is affected by the business. The social environment of business is ,often, very complex and intricate. In our research demographic factor also affect to the insurance factor like, income, population etc. In India population is more so most of the people take various types of insurance like vehicle, fire, theft, health, and accident etc. so in India development of insurance is being very fast now a days people are more educated and they are aware about insurance and benefits of insurance so people take insurance for safety. People purchase insurance according to income level and benefit of insurance so in india purchasing habit of insurance depends on income level.

TECHNOLOGICAL FACTORS: Technology is one of the most important determinants of success of a firm as well as the economic and social development of nation. Technology includes the tools both machines (Hard technology) and ways of thinking (Soft technology) available to solve problems and promote progress between, among and between societies. Insurance sector adopt new technology like Online registration of insurance, Online payment of premium.

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3.3 SWOT ANALYSIS


3.3.1 SWOT ANALYSIS OF HEALTH INSURANCE:

Strengths

- Strengths are the qualities that enable us to accomplish the organizations mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty. Following are the strength of health insurance in our research: Cost advantage Asset leverage Effective communication Innovation Loyal customer Market share leadership Strong management team Strong financial position

Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission
and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet. Following are the weakness of health insurance in our research: Bad communication Diseconomies of scale Over leverage financial position No online presence Not diversified Poor supply claim

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Opportunities - Opportunities are presented by the environment within which our


organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable Organizations can gain competitive advantage by making use of opportunities. Opportunities may arise from market, competition, industry/government and technology. Following are the opportunities of health insurance in our research: Acquisition Asset leverage Financial market Emerging market & expansion abroad Innovation Product and service expansion Takeovers

Threats - Threats arise when conditions in external environment jeopardize the reliability and
profitability of the organizations business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable. Following are the threats of health insurance in our research: Competition Economic slowdown External changes (Government, politics, taxes etc.) Maturing categories Lower cost competitors

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3.3.2 SWOT ANALYSIS OF FIRE INSURANCE:

Strengths

- Strengths are the qualities that enable us to accomplish the organizations mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty. Following are the strength of fire insurance in our research: Huge pool of skilled professional Having a good research and development effort Discounting to the population below poverty line so having large set of customer Worldwide insurance companies

Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission
and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet. Following are the weakness of fire insurance in our research: Due to inflationary pressure people not buy insurance Inflexibility of product No online presence

Opportunities - Opportunities are presented by the environment within which our


organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable Organizations can gain competitive advantage by making use of opportunities. Opportunities may arise from market, competition, industry/government and technology Following are the opportunities of fire insurance in our research: Various homogeneous group churned out in order to position the bancassurance with good IT infrastructure Acquisition

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Threats - Threats arise when conditions in external environment jeopardize the reliability and
profitability of the organizations business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable. Following are the threats of fire insurance in our research: Non response from target customer Threats of resistance to change workforce

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3.3.3 SWOT ANALYSIS OF THEFT INSURANCE:

Strengths

- Strengths are the qualities that enable us to accomplish the organizations mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty. Following are the strength of theft insurance in our research: Companies core competencies Good market position Patents Excellent financial strengths

Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission
and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet. Following are the weakness of theft insurance in our research: Poor performance Weak management

Opportunities - Opportunities are presented by the environment within which our


organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable Organizations can gain competitive advantage by making use of opportunities. Opportunities may arise from market, competition, industry/government and technology Following are the opportunities of theft insurance in our research: Use of new technology Growth in abroad market

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Threats - Threats arise when conditions in external environment jeopardize the reliability and
profitability of the organizations business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable. Following are the threats of theft insurance in our research: . Increase in competition Population shift Governmental or environmental regulation

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3.3.4 SWOT ANALYSIS OF ACCIDENT INSURANCE:

Strengths

- Strengths are the qualities that enable us to accomplish the organizations mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty. Following are the strength of accident insurance in our research: Insurance having a currently good market Premium rates are increasing and so are commission The variety of product increasing patents

Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission
and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet. Following are the weakness of accident insurance in our research: insurance companies often slow to respond to changing needs Buying insurance policy is cumbersome process Services similar to competitors

Opportunities - Opportunities are presented by the environment within which our


organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable Organizations can gain competitive advantage by making use of opportunities. Opportunities may arise from market, competition, industry/government and technology Following are the opportunities of accident insurance in our research: Technology is improving paperless transactions are available Busy life , customer need flexible , customizable policies Like mobile banking mobile insurance could be hit New innovation in technology- measuring weather variable

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Threats - Threats arise when conditions in external environment jeopardize the reliability and
profitability of the organizations business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable. Following are the threats of accident insurance in our research: Whether cycle New substitute product emerging Increasing expenses & lower profit margin hit hard on the smaller agencies & insurance companies Government regulation on issues like health care & terrorism can quickly change the direction of insurance

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3.3.5 SWOT ANALYSIS OF VEHICLE INSURANCE:

Strengths

- Strengths are the qualities that enable us to accomplish the organizations mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty. Following are the strength of vehicle insurance in our research: Very powerful brand and influential overseas Brand has a balance value equation Ubiquitous brand Takeovers

Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission
and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet. Following are the weakness of vehicle insurance in our research: Appears to have lost touch with core consumer Untargeted marketing Weak performance of gap brand Declining cash flow

Opportunities - Opportunities are presented by the environment within which our


organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable Organizations can gain competitive advantage by making use of opportunities. Opportunities may arise from market, competition, industry/government and technology Following are the opportunity of vehicle insurance in our research: Service expansion Grow into new market Emerging market expansion

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Threats - Threats arise when conditions in external environment jeopardize the reliability and
profitability of the organizations business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable. Following are the threats of vehicle insurance in our research: Increase numbers of competitors Economic crisis

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3.4 INDUSTRY COMPETITIVE STRUCTURE:


PORTERS FIVE FORCES ANALYSIS Porters five forces model is specially used in industry analysis. This will helps an organization to make a strategy. The bottled packaged water industry is a part of beverage industry which again comes under fast moving consumer goods. According to American agency the worlds bottled packed water is expected to reach $65.9bn by 2012. The cause behind this is population rising, consumer buying pattern, life style trends and growing level of health consciousness. Threat of entry: As the number of general insurance consumption is increasing in India, the opportunity for other players in increasing rapidly. In the General insurance industry the entry barrier is low. The entry barrier is low due to high competition, amount of capital more, easy to access government and legal law, less legal and government barrier and low switching cost. The existing insurance industry is paying attention and moving into general insurance, as they have good opportunity is very huge in this industry.

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Rivalry among existing competitors: Rivalry among existing competitors is often the most conspicuous of the competition. Firms in an industry are mutually dependent competitive moves of a firm usually affects others and may be retaliated.

1. Number of Firms, size and quality:Number of firm in the same industry shows the level of competition, if there is large number of firm in the industry, then the competition is high. In the context of general insurance industry, there are so many firms existing in the industry so there for competition is high in general insurance industry. 2. State of growth of industry:Faster the speed of growth makes the firm stronger then its competitior. There is continues growth of general insurance industry in india. Which make the level of competition very tuff in general insurance industry. 3. Exits barrier:-

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It explain in industry easily exit or not from the market. If industry had done high investment then industry can not leave the market easily. In context of general insurance industry, it require high investment due to which to leave the market is not easy for the firm. 4. Cost structure:Higher the fixed cost, higher the level of competition. Fixed cost are those expencise which industry must require spending so it will increase competition for spending high. In the context of general insurance industry firm has to keep fixed cost high so therefore level of competition is high in general insurance industry.

Threat of substitute An important force of competition is the power of substitutes. Substitutes limit the potential returns in an industry by placing a ceiling on the price firms in the industry can profitability charge. The more attractive the price performance alternative offered by substitute, the firmer the lid on industry profit.

Non-Life Insurance Market In December 2000, the GIC subsidiaries were restructured as independent insurance companies. At the same time, GIC was converted into a national re-insurer. In July 2002, Parliamant passed a bill, delinking the four subsidiaries from GIC. Presently there are 12 general insurance companies with 4 public sector companies and 8 private insurers. Although the public sector companies still dominate the general insurance business, the private players are slowly gaining a foothold. According to estimates, private insurance companies have a 10 percent share of the market, up from 4 percent in 2001. In the first half of 2002, the private companies booked premiums worth Rs 6.34 billion. Most of the new entrants reported losses in the first year of their operation in 2001. With a large capital outlay and long gestation periods, infrastructure projects are fraught with a multitude of risks throughout the development, construction and operation stages. These include risks associated with project implementaion, including geological risks, maintenance, commercial and political risks. Without covering these risks the financial institutions are not willing to commit funds to the sector, especially because the financing of most private projects is on a limited or non- recourse basis. Insurance companies not only provide risk cover to infrastructure projects, they also contribute long-term funds. In fact, insurance companies are an ideal source of long term debt and equity for infrastructure projects. With long term liability, they get a good asset- liability match by investing their funds in such projects. IRDA regulations require insurance companies to invest not less than 15 percent of their funds in infrastructure and social sectors. International Insurance companies also invest their funds in such projects.

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Insurance costs constitute roughly around 1.2- 2 percent of the total project costs. Under the existing norms, insurance premium payments are treated as part of the fixed costs. Consequently they are treated as pass-through costs for tariff calculations. Premium rates of most general insurance policies come under the purview of the government appointed Tariff Advisory Commitee. For Projects costing up to Rs 1 Billion, the Tariff Advisory Committee sets the premium rates, for Projects between Rs 1 billion and Rs 15 billion, the rates are set in keeping with the committee's guidelines; and projects above Rs 15 billion are subjected to re-insurance pricing. It is the last segment that has a number of additional products and competitive pricing. Insurance, like project finance, is extended by a consortium. Normally one insurer takes the lead, shouldering about 40-50 per cent of the risk and receiving a proportionate percentage of the premium. The other companies share the remaining risk and premium. The policies are renewed usually on an annual basis through the invitation of bids. Of late, with IPP projects fizzling out, the insurance companies are turning once again to old hands such as NTPC, NHPC and BSES for business. Re-insurance business Insurance companies retain only a part of the risk (less than 10 per cent) assumed by them, which can be safely borne from their own funds. The balance risk is re-insured with other insurers. In effect, therefore, re-insurance is insurer's insurance. It forms the backbone of the insurance business. It helps to provide a better spread of risk in the international market, allows primary insurers to accept risks beyond their capacity, settle accumulated losses arising from catastrophic events and still maintain their financial stability. While GIC's subsidiaries look after general insurance, GIC itself has been the major reinsurer. Currently, all insurance companies have to give 20 per cent of their reinsurance business to GIC. The aim is to ensure that GIC's role as the national reinsurer remains unhindered. However, GIC reinsures the amount further with international companies such as Swissre (Switzerland), Munichre (Germany), and Royale (UK). Reinsurance premiums have seen an exorbitant increase in recent years, following the rise in threat perceptions globally.

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Sector reforms: In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at "creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms" In 1994, the committee submitted the report and some of the key recommendations included: 1) Structure

Government stake in the insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate.

2) Competition

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only One State Level Life Insurance Company should be allowed to operate in each state.

3) Regulatory Body

The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.

4) Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time).

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5) Customer Service

LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerisation of operations and updating of technology to be carried out in the insurance industry The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition.

But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.

MAJOR POLICY CHANGES Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entry of private players into the insurance market which was hitherto the exclusive privilege of public sector insurance companies/ corporations. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following conditions:

Company is formed and registered under the Companies Act, 1956; The aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian insurance company; The company's sole purpose is to carry on life insurance business or general insurance business or reinsurance business. The minimum paid up equity capital for life or general insurance business is Rs.100 crores. The minimum paid up equity capital for carrying on reinsurance business has been prescribed as Rs.200 crores.

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The Authority has notified 27 Regulations on various issues which include Registration of Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders' interest etc. Applications were invited by the Authority with effect from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at Hyderabad.

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Ch: - 4 Segmentation, Targeting, & Positioning


4.1 Segmentation
Defination:- Segmentation can be known as classification & division of customers on the basis of various perameters like geographic, demographic, behavioral, & psychographic. 4.1.1 Geographic Segmentation Geographic segmentation calls for dividing the market into different geographical units such as nation, state, region, countries, cities etc. RURAL INSURANCE SCHEMES CATTLE INSURANCE Cattle Insurance was governed under Market Agreement as devised by GIC and the rates, terms, conditions etc. all were applicable to all the four Insurance Companies. However, w.e.f May 2003, it is no longer under Market Agreement. This policy covers indigenous cross bred and exotic cattle owned by private owners, various financial institutions, dairy farms, cooperatives, corporate dairies etc. The word cattle includes Milch, Cows and Buffaloes calves and heifers, stud bulls, bullocks and he-buffaloes and mithuns. Age group is specified for all the animals. The evaluation of the animal is done by a veterinary surgeon. SCOPE OF COVER/INSURANCE COVERAGE The policy shall give indemnity only for death of cattle due to: i. Accident (Inclusive of flood, cyclone, famine) or any other fortuitous circumstances (fortuitous means accidental in origin) ii. Diseases (Inclusive of Rinder-pest, Block Quarter, Hemorrhagic Septicemia, Foot and Mouth disease subject to vaccination against this disease). iii. Surgical operations iv. Strike riot and civil commotion and terrorism. v. Earthquake. Policy is subject to certain standard and general exclusions. Animals are identified by way of ear tagging. The policy covers both scheme and non-scheme animals. Scheme animals are those animals, which are sponsored by the Government agencies and are financed by some financial institutions, which may or may not involve any subsidy. Master Policy arrangements are usually done with DRDA, Bank, Cooperative Societies etc. There is a provision of Long Term Policies also.

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Note: All Cattle of individual Insured or Dairy Farm should be insured. No selection is allowed. FOETUS (UNBORN CALF) INSURANCE SCHEME This scheme covers the risk of death of embryo/foetus due to: a. Accident (Inclusive of flood, cyclone, famine) or any other fortuitous circumstances (fortuitous means accidental in origin) b. Diseases (Inclusive of Rinder Pest, Block Quarter, Hemorrhagic Septicemia, Foot and Mouth disease subject to vaccination against this disease). c. Surgical operations d. Strike riot and civil commotion and terrorism. e. Earthquake. The scheme is applicable to both the embryo transferred from a selected donor to the synchronized recipient or frozen embryo transferred to the recipient and also the embryo/fetus developed by artificial insemination technique. This can be covered as a separate policy in addition to Cattle Insurance Policy covering the recipient mother cow/buffalo.

4.1.2 Demographic segmentation Demographic segmentation can be define as a classification of customer based on demographic unit such as age, gender, income, occupation, life cycle, generation etc. Age & life cycle:As age changes or as cycle of life changes or moves on customers taste & preference, needs & wants will be changed. In health insurance population is segmented according to different age wise. As the age increase of person they become more weak thats why for them premium is high. In vehicle insurance company segment by considering age. As age increasing people drive more vehicle so they get vehicle insurance. In accident insurance as age increase the possibility of accident is more.

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Health Insurance Plans for Individuals upto 65 years


Comprehensive coverage for hospitalisation Sum insured options ranging from 3 lakhs to 15 lakhs Cashless hospitalization in more than 4000 hospitals across India Lifelong Renewal No Sub-Limits on room rent or Co-Payments No additional loadings at renewal due to claims First of its kind Restore benefit which restores entire sum insured with no extra charges Unique multiplier benefit that offers a bonus of 50% of sum insured for every claim free year Life stage:Life stage means diffirent stage in age like childhood, minor/young & old. As stage of life is getting changed need of insurance of person is getting changed. As person become old he/she have to pay large amount of premium bcz of his lifestage age. Every person have health insurance but they have different package for premium. As age is more person have more premium package. Income:Income means remuneration which employee get in return of his/her work. In health insurance, company segment according to income. As income high they have insurance of all family members. Income also affect in vehicle insurance as income high they have more vehicle . so they have insurance of all vehicles. Those people who have more income they have insurance of accident also. So income affect in accident segment also. If person have business and he earn high profit/income he have fire insurance for protection of business against fire. In theft insurance , company segment according to income. The person have high income they have theft insurance. Occupation:Every occupation require different type of product or service. If occupation changes the needs of customer might be changed. In health insurance, company segment according to occupation those who work in dangerous area they have health insurance. In fire insurance, the person who have business they always have fire insurance. as protection of business against fire. In theft insurance, person have business like of jewelry they have theft insurance.

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In vehicle and accident insurance the person who have occupation of transportation they have vehicle as well as accident insurance. Family size:Family size means how many members are there in family. That affect health insurance because as member high insurance will be more. It also affect accident insurance because as family size is big than accident insurance will be more.

4.1.3 Behavioral segmentation Behavioral segmentation can be define as classification of customer according to behavioural variables like occasion, benefits, user status, usage rate, radines level etc. Occasion:In simple word occasion means a specific day which are celebrated. Retairement is one type of occasion for old age people. Insurance company provide after retairement packages to the retired employee. There are very much retirement package are available in the market & it also available on internet.

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4.2 Targeting
Defination:- Targeting can be defined as process of evaluating & selecting specific target segments to market the brand or services. 4.2.1 Targeting patterns: Single segment concentration:Organisation is focusing in only & only one group & one product or services.

M1

M2

M3

P1 P2 P3 M = Market segment P = Product catagory Product specialization:This concept says that the organization wants to become specialized in one product or service.

M1

M2

M3

P1 P2 P3

Companies of general insurance is belong to product specialisation. Means they have one product for all market that is health,fire,theft,vehicle,accident.as they have age wise premium policy,income wise different premium policy,occupation wise premium policy.

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Market specialization:In this concept organization is specialized in particular segment & for that particular segment organization has got variety of product.

M1

M2

M3

P1 P2 P3

Selective specialization:In this concept the concept is producing no similar services for no one particular segment. Organization is expert in different services for different segment.

M1

M2

M3

P1 P2 P3

Full market coverage:Organization is targeted all products or services for all segments of the customer. In all non life insurance,

M1

M2

M3

P1 P2 P3

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4.3 Positioning
Defination:- Position can be define as an act of designing company`s offering in such a way so that it occupy a uniq & distinict place in the mind of customer. 4.3.1 Differentiation strategies: Product differentiation:Brand can be differentiation on the basis of number of product or services. Dimensions such as product form, features, performance, quality, labling, packing different from the competing brand. People differentiation:Sometimes differentiation with your employee is also important in the market. Better trained personnel exibite six characteristics like competence, courtousy, creditiblity, reliability & communicate. As all insurance company accept people differentiation strategy to gain competitive advantages over competitors.. Employees give good services to the customer which may increase sales. Service differentiation:The main service differentiation are ordering ease delivering installation customer training customer consulting & maintanence & repair. Insurance company should provide the different services as compare to competitors product services. By offering good services company can increase customers and sales. If service provider provide better service than competitor than company can gain advantage of more customer & more market share. Channel differentiation:Company must have different channel as compare to competitors brand company can achieve through the way they design their distribution channels coverage, expertise & performance. In traditional system of providing insurance company use 1-level distribution channel. But now scenario is getting changed now person can buy insurance from online also, in traditional system there is one intermidate between company & customer & that is agent. Company should appoint one person to sale the insurane to the customer. But in online system company don`t want any person to sale the insurance.

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Image differentiation:Buyers respond directly to company & brand image with certain brands. Customer can easily identify the product by certain colour or certain design or symbol. As customer can identify the different company by logo,symbol.

Tata AIG General Insurance Company Limited

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Chapter.5: Marketing Strategic analysis


The marketing mix is the basic set of tools marketers have available to carry out tactical marketing. The mix is generally thought of as being like the ingredients in a recipe they need to be combined in the correct proportions and at the correct time if the overall result is to be a success. As in a recipe, one ingredient cannot substitute for another they all work together to produce a result. The proportions of the mix necessarily need to be different according to the product type, corporate resources and of course the consumers characteristics.

5.1 Product:
Service is an intangible product. It consists of a bundle of features & benefits that have relevance to specific target market. As such, there is a high level of flexibility & opportunity to be innovation in designing a product offer. The product in service marketing mix is intangible in nature. Like physical products such as a soap or a detergent, service products cannot be measured. Tourism industry or the education industry can be an excellent example. At the same time service products are heterogeneous, perishable and cannot browned. The service product thus has to be designed with care. Generally service blue printing is done to define the service product. For example a restaurant blue print will be prepared before establishing a restaurant business. This service blue print defines exactly how the product (in this case the restaurant) is going to be. A product means what we produce. If we produce goods, it means tangible product and when we produce or generate services, it means intangible service product. A product is both what a seller has to sell and a buyer has to buy. Thus, an Insurance company sells services and therefore services are their product. When a person or an organization buys an Insurance policy from the insurance company, he not only buys a policy, but along with it the assistance and advice of the agent, the prestige of the insurance company and the facilities of claims and compensation.

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It is natural that the users expect a reasonable return for their investment and the insurance companies want to maximize their profitability. Hence, while deciding the product portfolio or the product-mix, the services or the schemes should be motivational. The Group Insurance scheme is required to be promoted, the Crop Insurance is required to be expanded and the new schemes and policies for the villagers or the rural population are to be included.

LEVEL OF PRODUCT:
Here the product refers to the services product. It includes the activities that marketer offered to customer that will result into satisfaction of need or want of predetermined target segment. Its not the physical product but an activity. In services we are not using the products but the benefits we get from the services. However it is depend upon the service provider i.e. levels of services This is the bundle of benefits the firm offers to the customer, and is the element which is intended to meet peoples needs. The product is not necessarily physical it could be a service, and indeed most products contain elements of both service and physical.

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Potential Product

Augmented Product

Expected Product Basic Product

Core Benefit

1. Core benefit: The fundamental level of the product is core benefits,the service or benefit that the customer is really buying is knowing as core benefit. 2. Basic product :The marketer must turn the core benefit in to basic product, without basic product marketer cannot provide the core benefit to the customer , customer use non-life insurance service for connect with different people as well as being touch with friends and relatives. 3. Expected product : In the insurance customers expect different insurance . like.health , fire ,theft ,vehicle. 4.Augmented product : At the fourth level, the marketer repairs an augmented service that exceeds customers expection .lots of carying along with the influence mind blowing services which will exceeds the customer expectation is called augmented services. 5. Potential product : It means the services which does not exceed in the market but it is expected in future .At something new and innovation of insurance sector.

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5.1.1 Health Insurance product


Individual Health Insurance: Insurance that provides health coverage for those who are not covered through an employer or other group. Assurant Health's individual health insurance product has flexible features designed to protect an individual and his or her family. Small Group Health Insurance: Health insurance coverage for a small business with 2 to 50 employees and their dependents. Assurant Health offers a variety of benefit choices to help employers design an affordable health plan that best meets the needs of their small business. Health Savings Accounts (HSAs) :Tax-deductible savings account that is paired with a high deductible insurance plan to cover current and future medical expenses. Unused balances roll over from year to year. As a result of the Medicare Prescription & Modernization Act passed in January, 2004, Assurant Health offers anyone with a qualified high-deductible insurance plan, a tax-advantaged HSA. Short-Term Health Insurance :A temporary health insurance plan that offers coverage for a short time period i.e., 30-185 days (depending on the state of residence). Assurant Health's short-term health insurance is offered to individuals who experience a gap in their health insurance coverage. Many short-term health insurance policyholders are between jobs, waiting for employer group coverage, laid off, on strike, recent college graduates or seasonal employees. Prescription, Dental-Vision and Health Savings Plans :For individuals without health insurance or for those who would like to supplement their current insurance plan with additional savings. The Assurant Health Savings Plans provide discounts on prescriptions, doctor visits, eye care, dental care via access to national networks.

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5.1.2 Fire insurance product


Fire Insurance Product Summary : Fire, lightning and other perils can seriously damage your property and impact your business severely.NTUC Income's Fire Insurance Policy is a comprehensive Policy that insures your business property against physical loss or damage by fire and lightning.In addition, NTUC Income's Fire Insurance also covers extraneous perils such as riot & strike, malicious damage, explosion, aircraft damage, impact damage, bursting & overflowing of water pipes, flood, earthquake, volcanic eruption, hurricane, cyclone, typhoon and windstorm, with no additional charge. The insurance can be taken up on the following interests:

The building Furniture, fixtures and fittings Office equipment Stock in trade Rent

Insurance provides protection against most risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, or boiler insurance. Property is insured in two main waysopen perils and named perils. Open perils cover all the causes of loss not specifically excluded in the policy. Common exclusions on open peril policies include damage resulting from earthquakes, floods, nuclear incidents, acts of terrorism, and war. Named perils require the actual cause of loss to be listed in the policy for insurance to be provided. The more common named perils include such damage-causing events as fire, lightning, explosion, and theft.

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5.1.3 Theft insurance product


Identity thieves are using your information for new phone and credit card accounts, online transactions, medical fraud or to get a job with your Social Security Number. Your compromised identity may also be used for others utility services, house payments, loan applications, fraudulent tax returns or government benefits. Unfortunately, most consumers dont find out about identity theft until its too late. They may recognize an inconsistency in their credit reports, or be concerned about a bill that comes for a service or product they never purchased. The best way to detect identity theft early is to monitor your accounts and statements on a regular basis. Average consumers will forget to check their credit history or not monitor their identifying information. Fortunately, identity theft protection services do most of the work for you, and will provide additional recovery and resolution services as needed. But finding the right identity protection service for you and your family can be difficult. In this site, you'll find articles such as Identity Theft Protection Services: LifeLock Command Center and How to Protect Yourself From Identity Theft as well as comprehensive reviews on identity protection services like LifeLock, Identity Force and ProtectMyID. All of this is presented with a side-by-side comparison to help you make an informed decision on which service is right for your identity protection needs

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5.1.4 Accident insurance product


Browse our Accident & Health Products 1)Amateur Sports Accident Insurance :Our participant accident plans can also provide accident medical benefits for participants, coaches, officials and other volunteers who are injured in covered accidents. These plans also complement an organizations general liability plan by covering injuries under a separate accident policy. 2)Camp Accident Insurance :Our Camp accident insurance plans can help provide medical benefits for members who are injured in covered accidents. These plans also complement an organizations general liability plan by covering injuries under a separate accident policy. 3)College Student Health Insurance: essential and affordably priced health insurance programs offered through educational institutions for college and university students.

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5.2 PRICE
Pricing of services is important and it is different from that of products pricing. The terminology price depends upon the services. services are intangible and it is very difficult to decide the price service due to following reasons This is the total of what the firm expects the customer to do in return. Price goes beyond the amount the company receives it also includes other costs the consumer has to pay, such as the cost of learning to use the product, the cost of switching from their existing product, the cost of installation and so forth. 1. Consumer cant judge and evaluate before the usages 2. It doesnt results into ownership. 3. Input-Output STRARTEGIES USED BY SERVICES PROVIDER: Actually services price can be charged as rent , interest, premium, admission , entry fees, etc. pricing strategies depends on the perceived value by the customer. If value is low: It means services quality is low. 1. Discount: It is the most popular pricing strategies. Here the service provider itself reduces the price. 2. Odd pricing: In this method the price is set as per od pricing bases. Like:499 Rs for Hair-styling 3. Syncro pricing: In syncro pricing the price is depends ob demand and supply of services. If value is high:
1. Prestige Price: In prestige price service quality is superb and customer is ready to pay high price it is seen status.

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General Price strategy1. Two part pricing: Here, price is divided into two parts. First part in that amount compulsory pay by customer. Second part in that as per using you paid the money. In the insurance sector The pricing decision is a critical one in service too , as this component of the marketing mix alone determines the revenue of the firm consumer sensitivity to price would be higher in service than in goods. Though the basic methods of pricing are the same as in goods, the pricing strategies for service basically depends upon value perception of various groups of people that are targeted by the organization. In the insurance business the pricing decisions are concerned with: I) The premium charged against the policies, ii) Interest charged for defaulting the payment of premium and credit facility, and iii) Commission charged for underwriting and consultancy activities. With a view of influencing the target market or prospects the formulation of pricing strategy becomes significant. In a developing country like India where the disposable income in the hands of prospects is low, the pricing decision also governs the transformation of potential policyholders into actual policyholders. The strategies may be high or low pricing keeping in view the level or standard of customers or the policyholders. The pricing in insurance is in the form of premium rates. The three main factors used for determining the premium rates under a life insurance plan are mortality, expense and interest. The premium rates are revised if there are any significant changes in any of these factors.

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1 Mortality (deaths in a particular area): When deciding upon the pricing strategy the average rate of mortality is one of the main considerations. In a country like South Africa the threat to life is very important as it is played boost of diseases. 2 Expenses: The cost of processing, commission to agents, reinsurance companies as well as registration are all incorporated into the cost of installments and premium sum and forms the integral part of the pricing strategy 3 Interest: The rate of interest is one of the major factors which determines people's willingness to invest in insurance. People would not be willing to put their funds to invest in insurance business .

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5.3 PLACE
Service is intangible as well as inseparable. These two characteristics do not allow a service firm to follow the same channel options available for goods marketing. Due to the intangible character of service traditional wholesaler & retailers cannot be used. As service cannot be stored & cannot be speculated from producers, retailing cannot be an independent activity in service marketing. Production, distribution 7 consumption are simultaneous activity in service. However service have an advantage of using a direct selling approach, through which service can be offered to the customer at a lower cost. This does not mean direct selling is the only way selling the service. There are certainly other channels of distribution such as agents & brokers franchisers & electronic channels that are used for distribution of services. This component of the marketing mix is related to two important facets I) Managing the insurance personnel, and II) Locating a branch. The management of agents and insurance personnel is found significant with the viewpoint of maintaining the norms for offering the services. This is also to process the services to the end user in such a way that a gap between the servicespromised and services -- offered is bridged over. In a majority of the service generating organizations, such a gap is found existent which has been instrumental in making worse the image problem. The transformation of potential policyholders to the actual policyholders is a difficult task that depends upon the professional excellence of the personnel. The agents and the rural career agents acting as a link, lack professionalism. The frontline staff and the branch managers also are found not assigning due weight-age to the degeneration process. The insurance personnel if not managed properly would make all efforts insensitive. Even if the policy makers make provision for the quality upgrading the promised services hardly reach to the end users. It is also essential that they have rural orientation and are well aware of the lifestyles of the prospects or users. They are required to be given adequate incentives to show their excellence.

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While recruiting agents, the branch managers need to prefer local persons and provide them training and conduct seminars. In addition to the agents, the frontline staff also needs an intensive training programmed to focus mainly on behavioral management. Another important dimension to the Place Mix is related to the location of the insurance branches. While locating branches, the branch manager needs to consider a number of factors, such as smooth accessibility, availability of infrastructural facilities and the management of branch offices and premises. In addition it is also significant to provide safety measures and also factors like office furnishing, civic amenities and facilities, parking facilities and interior office decoration should be given proper attention. Thus the place management of insurance branch offices needs a new vision, distinct approach and an innovative style. This is essential to make the work place conducive, attractive and proactive for the generation of efficiency among employees. The branch managers need professional excellence to make place decisions productive. Place in case of services determine where is the service product going to be located. The best place to open up a petrol pump is on the highway or in the city. A place where there is minimum traffic is a wrong location to start a petrol pump. Similarly a software company will be better placed in a business hub with a lot of companies nearby rather than being placed in a town or rural area.. The World Health Organization considers work place as one of the priority settings for health promotion into the 21st century" because it influences "physical, mental, economic and social well-being" and "offers an ideal setting and infrastructure to support the promotion of health of a large audience. The Luxembourg Declaration provides that health and well-being of employees at work can be achieved through combination of A) Improving the organization and the working environment, B) Promoting active participation, and C) Encouraging personal development.

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Workplace health promotion strategies also combine alleviation of health risk factors with enhancement of health strengthening factors. This concept is also formulated as integration of a pathogenesis that addresses diseases with salutogenesis that promotes health and well-being. A guideline recommended in the Luxembourg Declaration includes: 1. Participation: i.e. all staff have to be involved; 2. Integration: i.e. workplace health promotion has to be integrated in all important decisions and in all areas of organizations; 3. Project management: i.e. all measures and programmers have to be oriented to a problem-solving cycle: needs analysis, setting priorities, planning, implementation, continuous control and evaluation; 4. Comprehensiveness: i.e. workplace health promotion includes individualdirected and environment-directed measures from various fields. It combines the strategy of risk reduction with the strategy of the development of protection factors and health potentials. The positive impact of implementation of workplace health promotion programmers on productivity is widely discussed. The first logical step is to examine the impact of workplace health promotion on absenteeism as productivity is impossible if an employee is absent.[3] However, the potential of increasing productivity is much greater when presenters is analyses as it presents the situation when an employee is being registered as attending and being paid with lower performance due to a health condition or other causes. Customer & service provider Meet at an Arms Length :Here, customer & service provider both are communicating with certain types of insurance. In general insurance include Health, fire, Theft, Accident, Vehicle.

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5.4 PROMOTION
Consumer is co producers in the service business the quality of service will not only depend upon the performance of the service provider but also the performance of the service consumer. Very few service organization or service concepts can have readily available mature performers as consumer. It is responsibility of service organization to educate & if necessary train customers so as to make them prepared to use the service efficiently. A well designed promotional programmer is of immense help to organization to inform, persuade & train customer to better their experiences. The insurance services depend on effective promotional measures. In a country like India, the rate of illiteracy is very high and the rural economy has dominance in the national economy. It is essential to have both personal and impersonal promotion strategies. In promoting insurance business, the agents and the rural career agents play an important role. Due attention should be given in selecting the promotional tools for agents and rural career agents and even for the branch managers and front line staff. They also have to be given proper training in order to create impulse buying. Advertising and Publicity, organization of conferences and seminars, incentive to policyholders are impersonal communication. Arranging Kirtans, exhibitions, participation in fairs and festivals, rural wall paintings and publicity drive through the mobile publicity van units would be effective in creating the impulse buying and the rural prospects would be easily transformed into actual policyholders. Promotions have become a critical factor in the service marketing mix. Services are easy to be duplicated and hence it is generally the brand which sets a service apart from its counterpart. You will find a lot of banks and telecom companies promoting themselves rigorously. Why is that? It is because competition in this service sector is generally high and promotions is necessary to survive. Thus banks, IT companies, and dotcoms place themselves above the rest by advertising or promotions.

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Attracting the consumer to consume services it is promotion. PROMOTION MIX Advertisement Publicity Public relation Events & Experiences

1. Advertisement: This is the best method to attract the consumer towards your services. In that give the advertisement in news papers, radio, holders.By that way you can also attract the consumer. 2. Publicity: This is also important way to attract the consumer. Publicity is a non paid and non personal form of service exposer to target customer. 3. Public relation: In public relation, make relation good with the customer so they can come your place again. 4. Events& Experiences: In that use events for attracting the consumer to use the services. Celebrate events at good place so that consumer trust on you and they also love your services. Like:-Cricket match All insurance are beneficial because the following reasons: 1 Capture senior-level support. A commitment from the top is critical to the success of any promotion initiative. Management must understand the benefits of the program for both the employees and the organization and be willing to put funds towards its development, implementation and evaluation. Descriptions of what competitors are doing in the way of wellness programs and even linking wellness goals to business goals, values and strategic priorities will help to secure senior management support. Managers who walk the talk and take part in the initiatives and activities will go a long way to driving others to participate as well. 2. Create a promotion team. All teams should include a cross-section of potential program participants including employees. Your team should include individuals who will have a role in program development, implementation and evaluation. This ensures broad ownership of the program and more innovative ideas. A team based approach will help to garner buy in from both management and the participants,develop a program that is responsive to the needs of all potential

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participants, and will be responsible for overseeing all of the companys wellness efforts. 3. Collect data that will drive your promotion initiatives. Once your team is in place and management is on board, it is time to gather baseline data to help assess employee health interests and risks. The results of your data collection will guide you in what kind of health programs to offer. This process may involve a survey of employee interest in various health initiatives, risk assessments, and claims analysis to determine current employee disease risk. 4. Craft an annual promotion operating plan. For your promotion program to succeed, you must have a plan. An annual promotion operating plan should include a mission statement for the program along with specific, measurable short-and long-term goals and objectives. Your program is more likely to be successful if it is linked to one or more of the companys strategic initiatives, as it will have a better chance of maintaining the support of management throughout the implementation process. A written wellness plan also provides continuity when members of the health promotion committee change and is instrumental in holding the team accountable to the goals, objectives, and timeline agreed upon. 5. Choose appropriate promotion initiatives. The promotion initiatives that you choose should flow naturally from your data (survey, HRA aggregate report, claims) to goals and objectives. They should address prevailing risk factors in your employee population and be in line with what both management and employees want from the programs and/or initiatives. 6. Create a supportive environment. A supportive environment provides employees with encouragement, opportunity, and rewards. A culture of that supports worksite promotion might have such features as healthy food choices in their vending machines, a no-smoking policy and flexible work schedules that allow workers to exercise. A workplace that values will celebrate and reward achievements and have a management team that models healthy behavior. Most importantly, a culture of involves employees in every aspect of the wellness program from their design and promotion to their implementation and evaluation. 7. Consistently evaluate your promotion outcomes. Evaluation involves taking a close look at your goals and objectives and determining whether you achieved your desired result. Evaluation allows you celebrate goals that have been achieved and to discontinue or change ineffective programs and/or initiatives.

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5.5 PROCESS
Process is a functional activity that assesses service availability & quality. The way the physical setting is designed technically & how the functions are scheduled & routed to provide promised service to the customers speaks of the efficiency of the process. In simple terms, the management of process is to mange service encounters ( the interaction between service employees & customers, customers & service environment , systems & other facilities ) effectively gringos has described process as interactive marketing where in moment of truth. Types of Service Process 1. Continuous process: A system where the process is continue for one type of services in large quantity. Entries to exit the process remain same. 2. Intermittent process: In this type of service process, the services are depend upon Order, Need & Requirement of the people. Here , the services are provided in installment or phases. When customer want to get service, the service providers are ready to give services otherwise not. 3. Job shop: Job shop services means services are provided into different departments as per its types and nature.

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5.5.1 All insurance process


I. Complete an Application Insurance companies provide various ways for you to obtain and submit a general insurance application:

ONLINE APPLICATION : This is the fastest way to purchase insurance. You provide application data directly to the insurance company website. Processing of the application begins immediately. DOWNLOAD THE APPLICATION FORM: Download the form from the internet. Print it, then complete the application by hand. Submit the document via mail, fax or scanner/email. REGULAR MAIL :An agent or insurance company mails you the application form. You complete the document by hand and send it back. PHONE-IN APPLICATION is available from limited insurers.

II. Submit a Payment Most insurance companies require a premium deposit be submitted with the application:

Insurance companies typically allow you to submit a deposit via check, money order, credit card or direct charge to a bank account. Some insurers also require a non-refundable one-time application fee. If your application is approved, your deposit will be applied against your premium requirement for the initial payment period. If your application is denied or if you refuse the insurer's counteroffer, your premium deposit will be refunded net (if applicable) any non-refundable application fee.

III. An Initial Review is Performed The insurer reviews your application and may request additional information they believe necessary to complete an accurate evaluation:

The insurer may phone you to obtain additional information. The insurer may ask you to complete a questionnaire specific to a condition indicated on the application. The insurer may require copies of your medical records.

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If medical records are required, most insurers pay a reasonable fee for the work involved in copying and mailing the information. For applicants age 55 or more who have not seen a physician in the last year, a checkup or paramedic exam may be required. Some insurers will assist in arranging a paramedic exam.

IV.The Application is Underwritten When required history information is accumulated, the insurer studies the data and makes a decision. Possible outcomes include:

The application is approved with standard coverage at the lowest allowable rates. This is the preferred result. The insurer counteroffers with a higher rate requirement. The insurer requires a medical condition-specific exclusion not included in the standard insurance contract. The insurer requires a non-standard exclusion AND a higher rate. The insurer declines the request for insurance, refunding the premium deposit, net (if applicable) any non-refundable application fee.

V. How Long does the Process Take There are no guarantees as to how long it will take an insurance company to process your application for permanent insurance.For a young person in excellent the process may take only a day. If a more detailed review is required, the insurance company will need more time. Typical insurance application turnaround is two or three weeks, but it is not unusual for an insurance company to take a month or longer. It depends on the insurance company, it depends on the insurance product, and it depends on the applicants history.

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5.6 PEOPLE
Service organization are people oriented & people based organization. Employees of a service firm constitute the major competency in undertaking business operations. Every employee of the service organization is a marketing person, who undertakes either full-time or part-time marketing activity. Whether an employee is involved in direct contact with the customer or not , if he was placed on the line of visibility , his behavior activities & performance will have a direct influence on consumers. Service employees are to be trained & motivated for better performance in marketing activities. Understanding the customer better allows to design appropriate products. Being a service industry which involves a high level of people interaction, it is very important to use this resource efficiently in order to satisfy customers. Training, development and strong relationships with intermediaries are the key areas to be kept under consideration. The people who providing services to customer, it contain 2 element because, Customer who receives services is Human being. Service provider who provides services is also Human being. High contact people High contact people mean those types of people who frequently come in contact with customers. In this people maintain appearance in their behavior. Process is a apart of marketing mix. The length of service process decides satisfaction for the customer. Types of Service Process 1. Continuous process: A system where the process is continue for one type of services in large quantity. Entries to exit the process remain same. 2. Intermittent process: In this type of service process, the services are depend upon Order, Need & Requirement of the people. Here , the services are provided in installment or phases. When customer want to get service, the service providers are ready to give services otherwise not. 3. Job shop: Job shop services means services are provided into different departments as per its types and nature.

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5.7 PHYSICAL EVIDENCE


Most service cannot be offered without the support of tangibles. Thought customers cannot see the service they can definitely see the tangibles associated, examine them & try to form on opinion on the service provider. Thus a passenger transport organizations promise of a sale comfortable & timely journey from one place to another will be examined by the transport vehicles condition, seating facilities & other physical facilities , the personality of the driver and other personnel, the officer furniture & equipment being used & also the way in which the employees are responding to customers. All these physical evidence plays a critical role in shaping consumer perceptions & also expectations. Distribution is a key determinant of success for all insurance companies. Today, the nationalized insurers have a large reach and presence in India. Building a distribution network is very expensive and time consuming. If the insurers are willing to take advantage of India's large population and reach a profitable mass of customers, then new distribution avenues and alliances will be necessary. Initially insurance was looked upon as a complex product with a high advice and service component. Buyers prefer a face-to-face interaction and they place a high premium on brand names and reliability. As the awareness increases, the product becomes simpler and they become off-the-shelf commodity products. Today, various intermediaries, not necessarily insurance companies, are selling insurance. low pricing. Today, it is one of the largest motor insurance operator. Technology will not replace a distribution network though it will offer advantages like better customer service. Finance companies and banks can emerge as an attractive distribution channel for insurance in India. In Netherlands, financial services firms provide an entire range of products including bank accounts, motor, home and life insurance and pensions. In France, half of the life insurance sales are made through banks. In India also, banks hope to maximize expensive existing networks by selling a range of products. It is anticipated that rather than formal ownership arrangements, a loose network of alliance between insurers and banks will emerge, popularly known as banc assurance.

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Another innovative distribution channel that could be used are the non-financial organizations. For an example, insurance for consumer items like fridge and TV can be offered at the point of sale. This increases the likelihood of insurance sales. Alliances with manufacturers or retailers of consumer goods will be possible and insurance can be one of the various incentives offered. The last element in the service marketing mix is a very important element. As said before, services are intangible in nature. However, to create a better customer experience tangible elements are also delivered with the service. Take an example of a restaurant which has only chairs and tables and good food, or a restaurant which has ambient lighting, nice music along with good seating arrangement and this also serves good food. Which one will you prefer? The one with the nice ambience. Thats physical evidence. Several times, physical evidence is used as a differentiator in service marketing. Imagine a private hospital and a government hospital. A private hospital will have plush offices and well dressed staff. Same cannot be said for a government hospital. Thus physical evidence acts as a differentiator. Physical evidence refers to the place where service is being delivered. The customer creates his opinion about the service organisation based on how he finds the place or the physical evidence. Factors which are always looked for in a restaurant for example are cleanliness, promptness and friendly attitude. Physical evidence is an essential part of the marketing mix for the service industry. The mere sight of the place or the appearance of the physical evidence forms the backbone of the customer's opinion making. The term 'service' can be defined as an act of doing something for someone. Service is by far non-material and an intangible entity. So a service can easily be distinguished from a product which can be held and owned. Service cannot be owned as it is consumed at the point of purchase.

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Chapter 6 Primary Data Analysis 6.1 Data analysis: Settlement is less important for them. As per our research
,out of 100%,0.67% people give first rank to the speed of claim settlement. out of 100%,1% people give 6th rank to the speed of claim settlement. 1: occupation business 106 profession 20 6.67 service 160 53.33 housewife 14 4.67 Total 300 100

Number of respondent 35.33 %

occupation
4.67 35.67 53.33 business profession service housewife 6.67

Interpretation: As per the above mention chart we can say that out of 100 percent people, non life 1. 35.33% are businessman who has insurance 2. 6.67%are professional who have insurance 3. 53.33%are doing job that have insurance 4. 4.67% are house wife who have insurance The sample size consist of 300 respondents taken randomly. Here we have segmented sample according to occupation. as people who are doing job, they have more insurance than others. and house wife who have less insurance than others due to awareness of insurance.

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2: Family income <20000 Number of 107 respondent 35.67 % 20000to30000 30000to40000 >40000 112 40 41 37.33 13.33 13.67 Total 300 100

Family income
13.67 13.33 35.67

<20000 20000to30000

37.33

30000to40000 >40000

Interpretation: As per the above chats, we can say that out of 100%, people 1. 35.67%are the people who have insurance. who belong to below 20,000 monthly family income. 2. 37.33% are the people who belong to 20,000 to 30,000 monthly family income. 3. 13.33% are the people who belong to 30,000 to 40,000 monthly family income. 4. 13.67% are the people who belong to more than 40,000 monthly family income. The sample size consist of 300 respondent taken randomly. Here we have segmented our sample size according to familys monthly income.There is no positive relationship between income and insurance taking.People have more insurance who belong to 20,000 to 30,000.

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3: Family members two 13 three 68 22.67 four 104 34.67 >four 115 38.33 Total 300 100

Number of respondent 4.33 %

Family members
4.33 38.33 22.67

two three four

34.67

>four

Interpretation: The sample size consist of 300 respondents taken randomly. Here we have segmented our sample size according to family members.By observing above chart, we can say that there is positive relationship between no. of members in the family and insurance taking by them.Family having members more than four they have more insurance and family having only two members they have less insurance.

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4 General insurance yes 300 100 no total 300 100

Number of respondent %

general insurance
0

yes

100

Interpretation: Here we have segmented our sample size according to whether they have general insurance or not.As per our research, 98.1% people have general insurance and 2% people have general insurance and 2% people have no general insurance.

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5 Health insurance yes 257 85.67 no 43 14.33 Total 300 100

Number of respondent %

90 80 70 60 50 40 30 20 10 0 yes no 14.33 85.67 Column3 Column4 Column1

Interpretation: Here we have segmented our total sample size according to whether they have health insurance or not.From the above chart, we can say that 85.67% people have health insurance. And 14.33% people have no health insurance.As per research we can say that maximum no. of people have health insurance.

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6 Fire insurance yes 25 8.33 No 275 91.67 Total 300 100

Number of respondent %

fire ins.
100 90 80 70 60 50 40 30 20 10 0 no. of respondent no. of res. 8.33 % yes no 91.67

Interpretation: Here, we have segmented our total sample size, selected randomly, according to whether they have fire insurance or not.8.33% people have fire insurance and remaining 91.67% people have no fire insurance. As per5 research we can say that maximum no. of people have health insurance.

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7 Theft insurance Yes 22 7.33 no 278 92.67 Total 300 100

Number of respondent %

theft insurance
100 90 80 70 60 50 40 30 20 10 0 no.res no.res. % yes no

Interpretation: Here, we have segmented our total sample size selected randomly, according to whether they have theft insurance or not.As per our research, 7.33% people have theft insurance 92.67% people have no theft insurance.The season, for maximum no theft insurance ,may be banking facility which give security of money, and of other thing.

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8 Accident insurance yes Number of respondent % 131 43.67 no 169 56.33 Total 300 100

acci. ins
60 50 40 30 20 10 0 no.res no.res % 43.67 56.33

yes no

Interpretation: Here, we have segmented our sample size according to whether they have accident insurance or not.As per our research, 43.67% people having accident insurance 56.33% people having no insurance as day by day accident increases.In this accident insurance 131 no. of respondent consider all the factor .

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9 Vehicle insurance yes 165 55 no 135 45 Total 300 100

Number of respondent %

vehicle ins.
60 50 40 30 20 10 0 no.res no.res % 55 45

yes no

Interpretation: Here, we have segmented our sample size according to whether they have vehicle insurance or not.As per our research, 55% people having vehicle insurance 45%peo;ple having no vehicle insurance.There is no much more difference between people having vehicle insurance and people having no vehicle insurance.

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10 Company of health insurance National New Oriental United ICICI Bajaj TATA Others blank ins. ltd. India ins.ltd. ins. Lombard Allianz AIG ins. ltd. ltd 36 35 37 18 35 21 8 68 42 11.67 12.33 6 11.67 7 2.67 22.67 14

No. Res. 12 %

company Health insurance


N.I.L 14 22.67 7 2.67 11.67 12 11.67 12.33 6 N.I.I.L O.I.L U.I.L ICICI lombard BAJAJ Allianz TATA AIG

Interpretation: The above chart shows that the % of respondent having health insurance of particular company. As per our research out of 100%, 1. 2. 3. 4. 5. 6. 7. 8. 9. 12% people having health insurance of national ins. Co. ltd. 11.67% people having health insurance of new India assurance co.ltd 12.33% people having health insurance of oriental ins. Co. ltd. 6% people having health insurance of united insurance co. ltd. 11.67% people having health insurance of icici Lombard 7% people having health insurance of Bajaj Allianz 2.67% people having health insurance of Tata AIG 22.67% people having health insurance of Others 14% people not have health insurance .from the above chart, we can say that maximum no. of people having i9ns. Of others company than mentioned above

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11 Premium 1 43 2 56 3 66 4 52 17.33 5 32 6 8 7 1 0.33 Blank total 42 300 14 100

No. of Respondent 14.33 18.67 22 %

10.67 2.67

premium
2.67 0.33 10.67 17.33 22 1 14 14.33 18.67 2 3 4 5 6 7

Interpretation: The above mention chart shows that the % of respondents rank premium as a factor they consider while buying health.ins. 1st rank shows that people give first priority to premium and people who give 7 rank . for them it is less important.

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12 cash less benefit 1 38 2 38 12.67 3 53 17.67 4 58 19.33 5 46 15.33 6 21 7 7 4 1.33 blank total 42 300 14 100

No.of respondent 12.67 %

cash less benefit


1.33 7 14 12.67 12.67 1 2 3 15.33 17.67 19.33 4 5 6 7 blank

Interpretation: Above chart show that the % of people are considered cash less benefit as a factor while buying health insurance. Out of 100% ,12.67% people give first rank to cash less benefit. Out of 100% ,1.33 people give seven rank to cash less benefitAs per our research ,we can say that maximum no. of people give priority to cash less benefit as a factor.

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13 Age coverage 1 17 2 41 3 53 4 47 5 62 6 31 7 7 blank Total 42 300 14 100

No. of respondent 5.67 %

13.67 17.67 15.67 20.67 10.33 2.33

Age coverage
2.33 10.33 17.67 20.67 15.67 14 5.67 13.67 1 2 3 4 5 6 7 blank

Interpretation: The above chart show that how far people considered Age coverage as a factor while buying health insurance. As per our research, out of 100%,5.67% people give first priority to age coverage. out of 100%,2.33% people give seven rank to age coverage.As per our research, there is no much more difference between people giving first and last priority to age coverage.

248

14 Family coverage 1 113 2 49 16.33 3 21 7 4 21 7 5 23 7.67 6 25 8.33 7 6 2 blank total 42 300 14 100

No.of respondent 37.67 %

family coverage
2 8.33 7.67 7 7 16.33 14 37.67 1 2 3 4 5 6 7 blank

Interpretation: The above chart show that the % of people giving different priority to family coverage.As per our research ,out of 100%,37.67% people give first rank to the family coverage.out of 100%,2% people give seven rank to the family coverage

249

15 company 1 25 2 44 14.67 3 29 9.67 4 38 12.67 5 53 17.67 6 63 21 7 6 2 blank Total 42 300 14 100

No. of respondent 8.33 %

company
2 14 8.33 14.67 21 1 2 9.67 3 4 5 12.67 17.67 6 7 blank

Interpretation As per our relation maximum no. of people have given 6th rank which shows less important company as a factor while buying health insurance As per our research ,out of 100%,8.33% people give first rank to the company out of 100%,2 people give seven rank to the company

250

16 speed of claim settlement 1 20 2 24 8 3 34 11.33 4 36 12 5 26 8.67 6 103 34.33 7 15 5 blank Total 42 300 14 100

No. of respondent 6.67 %

speed claim settlement


14 5 11.33 6.67 8 1 2 3 12 34.33 8.67 4 5 6 7 blank

Interpretation: The above chart shows that how far people considered speed of claim settlement as a factor while buying health insuranceAs per our research, maximum no. of people rank 6th rank which shows speed of claim settlement is less important for them.As per our research ,out of 100%,6.67% people give first rank to the speed of claim settlement. out of 100%,5% people give seven rank to the speed of claim settlement.

251

17 others 1 3 2 5 1.67 3 6 2 4 3 1 5 15 5 6 6 2 7 220 73.33 Blank Total 42 300 14 100

No. of respondent 1 %

others
1.67 14 1 2 1 5 2 1 2 3 4 5 6 73.33 7 blank

Interpretation: Above chart show that how far people considered others benefit as factor while buying health insurance. Out of 100%,1% people give first rank to the others as a factor. Out of 100%,73.33% people give seven rank to the others as a factor. Maximum no. of people give 7thrank to the others. This means majority of people considered above mentioned factor rather than others.

252

18 payment premium of health insurance <2000 84 2001to5000 5001to8000 >8000 99 46 29 33 15.33 9.67 blank 42 14 Total 300 100

No. of respondent 28 %

payment of premium
14 9.67 <2000 2001to5000 15.33 5001to8000 >8000 33 blank

28

Interpretation: Above chart show that how far people considered others benefit as factor while buying health insurance. Out of 100 28% respondent pay the premium less than 2000 . And 15.33% no. Of respondent pay 5001 to 8000.In this maximum no. of respondent pay the premium of health insurance 2001 to 5000. In out of 100 9.67% respondent pay the premium more than 8000.

253

19 satisfaction of health insurance Yes 242 80.67 No 16 5.33 blank 42 14 total 300 100

No.of respondent %

satisfaction of health insurance


0 14 5.33 yes no blank 80.67

Interpretation: Here ,we have segmented our total sample size according to whether they are satisfied with services given by health insurance or not. As per our research out of 100% ,80.67% people are satisfied with services given by health insurance. As per our research out of 100% ,5.33% people are not satisfied with services given by health insurance. So ,we can say that maximum no. of people satisfied with services given by health insurance.

254

20 change of Health Insurance Company yes 27 9 no 227 75.67 blank 46 15.33 Total 300 100

No.of respondent %

change of health ins.co.


0 15.33 9

yes no blank 75.67

Interpretation: Here ,we segmented our total sample size according to whether they want to change their company or not.As per our research out of 100%, 9% people want to change their insurance company. As per our research out of 100%, 75.67% people not want to change their insurance company.We can see from the above chart maximum no. of people loyal towards their insurance company.

255

21 if yes, why? High Poor premium cash less 13 2 0.67 Poor Less others services dieses coverage 9 2 2 3 0.67 0.67 blank Total

No.of respondent 4.33 %

272 90.67

300 100

if yes, why?
0.67 4.33 3 high premium poor cash less poor services less dieses coverage 90.67 others blank 0.67 0.67

Interpretation: Here we segmented our total sample size of changing in health insurance in this chart there are so many reasons High premium , poor cash less & service , less dieses & other reasons consider . In our sample size 300 respondent maximum reasons is poor service in the health insurance it is 3%. In this 300 respondent out of 100 4.33% no. of respondent change the health insurance co. Bcz high premium & .67% no. of respondent change in health insurance co. Bcz the poor cash less & service.

256

22 companies of fire insurance National New Oriental United ICICI Bajaj TATA Others blank ins. ltd. India ins.ltd. ins. Lombard Allianz AIG ins. ltd. ltd 36 35 37 18 35 21 8 68 42 11.67 12.33 6 11.67 7 2.67 22.67 14

No. Res. 12 %

company Fire insurance


N.I.L 14 22.67 7 2.67 11.67 12 11.67 12.33 6 N.I.I.L O.I.L U.I.L ICICI lombard BAJAJ Allianz TATA AIG

Interpretation: The above chart shows that the % of respondent having fire insurance of particular company. As per our research out of 100%, 1. 2. 3. 4. 5. 6. 7. 8. 9. 12% people having fire insurance of national ins. Co. ltd. 11.67% people having fire insurance of new India assurance co.ltd 12.33% people having fire insurance of oriental ins. Co. ltd. 6% people having fire insurance of united insurance co. ltd. 11.67% people having fire insurance of icici Lombard 7% people having fire insurance of Bajaj Allianz 2.67% people having fireinsurance of Tata AIG 22.67% people having fire insurance of Others 14% people not have fire insurance .from the above chart, we can say that maximum no. of people having i9ns. Of others company than mentioned above

257

23 premium of fire ins. 1 5 2 10 3.33 3 3 1 4 3 1 5 2 0.67 6 1 0.33 blank 276 92 Total 300 100

No.of respondent 1.67 %

premium of Fire ins.


1.67 3.33 1 1 0.67 0.33 1 2 3 4 5 92 6 blank

Interpretation: The above mention chart shows that the % of respondents rank premium as a factor they consider while buying Fire .ins. 1st rank shows that people give first priority to premium and people who give 7 rank . for them it is less important.1.67% no. of respondent give 1st Rank,1% no. of respondent gives 3rd & 4th rank of the premium of fire insurance .

258

24 cash less benefit 1 3 2 3 6 2 4 9 3 5 6 2 6 blank 276 92 Total 300 100

No. of respondent 1 %

cash less benefit


0 0 0 0 00 0 12 3 20 1 2 3 4 5 6 blank 92

Interpretation: Above chart show that the % of people are considered cash less benefit as a factor while buying fire insurance. Out of 100% ,1% people give first rank to cash less benefit. Out of 100% ,3% people give seven rank to cash less benefit As per our research ,we can say that maximum no. of people give priority to cash less benefit as a factor.

259

25 family coverage 1 3 2 5 1.67 3 5 1.67 4 2 0.67 5 7 2.33 6 2 0.67 blank 206 68.67 total 300 100

No.of respondent 1 %

family coverage
1.671.67 0.67 1 1 2 3 4 5 68.67 6 blank 2.33 0.67

Interpretation: The above chart show that the % of people giving different priority to family coverage. As per our research ,out of 100%,68.67% people give first rank to the family coverage .out of 100%,0.33% people give 5th rank to the family coverage

260

26 companies 1 3 2 5 1.67 3 5 1.67 4 2 0.67 5 7 2.33 6 2 0.67 Blank 206 68.67 Total 300 100

No. of respondent 1 %

company
1.671.67 0.67 1 1 2 3 4 5 68.67 6 blank 2.33 0.67

Interpretation As per our relation maximum no. of people have given 6th rank which shows less important company as a factor while buying fire insurance As per our research ,out of 100%,1% people give first rank to the company out of 100%,2.33% people give seven rank to the company

261

27 speed of claim settlement 1 2 2 5 1.67 3 4 1.33 4 8 2.67 5 5 1.67 6 blank 276 92 Total 300 100

No. of respondent 0.67 %

speed of claim settelment


1.33 2.67 0.67 1.67 1.67 0 1 2 3 4 5 92 6 blank

Interpretation: The above chart shows that how far people considered speed of claim settlement as a factor while buying fire insurance As per our research, maximum no. of people rank 6th rank which shows speed of claim settlement is less important for them. As per our research ,out of 100%,0.67% people give first rank to the speed of claim settlement. out of 100%,1% people give 6th rank to the speed of claim settlement.

262

28 others 1 1 2 1 0.33 3 1 0.33 4 5 1 0.33 6 20 0.67 blank 276 92 Total 300 100

No. of respondent 0.33 %

others
0.33 0.33 0.33 0 0.33 6.67 1 2 3 4 5 92 6 blank

Interpretation: Above chart show that how far people considered others benefit as factor while buying fire insurance. Out of 100%,1% people give first rank to the others as a factor .Out of 100%,92% people give 6th rank to the others as a factor. Maximum no. of people give 1st rank to the others. Which means majority of people considered above mentioned factor rather than others.

263

29 payment of premium of fire ins. <2000 5 2001to5000 5001to8000 >8000 11 5 3 3.67 1.67 1 blank 276 92 Total 300 100

No.of respondent 1.67 %

payment of premium of fire ins.


1.67 3.67 1.67 1

<2000 2001to5000 5001to8000 >8000 92 blank

Interpretation: Above chart show that how far people considered others benefit as factor while buying fire insurance. Out of 100%,1% people give first rank to the others as a factor .Out of 100%,1.67% people give more than payment of fire insurance . Maximum no. of people give 1% respondent pay the premium of fire insurance more than 8000. This means majority of people considered above mentioned factor rather than others.

264

30 satisfaction of fire ins. Yes 24 8 No blank 276 92 total 300 100

No.of respondent %

satisfaction of fire ins.


0 8 0

yes no blank 92

Interpretation: Here ,we have segmented our total sample size according to whether they are satisfied with services given by fire insurance or not As per our research out of 100% ,8% people are satisfied with services given by health insurance. As per our research out of 100% , people are not satisfied with services given by fire insurance. So ,we can say that maximum no. of people satisfied with services given by fire insurance.

265

31 changes of fire ins. Company yes 4 1.33 no 20 6.67 blank 276 92 Total 300 100

No. of respondent %

changes of fire ins. Comp.


1.33 0 6.67

yes no blank 92

Interpretation: Here ,we segmented our total sample size according to whether they want to change their company or not. As per our research out of 100%, 1.33% people want to change their insurance company. As per our research out of 100%, 6.67% people not want to change their insurance company.We can see from the above chart maximum no. of people loyal towards their insurance company.

266

32 if yes, why? High Poor premium cash less 4 Poor service others blank 296 98.67 Total 300 100

No. of respondent 1.33 %

if yes, why?
0 0 1.33

high premium poor cash less poor service others 98.67 blanks

Interpretation: Here we segmented our total sample size of changing in fire insurance in this chart there are so many reasons High premium , poor cash less & service , less dieses & other reasons consider . In our sample size 300 respondent maximum reasons is poor service in the fire insurance it is1.33%. In this 300 respondent out of 100 98.67% no. of respondent which not change the fire insurance co.

267

33 companies of Theft insurance National New Oriental United ICICI Bajaj TATA Others blank ins. ltd. india ins.ltd. ins. Lombard Allianz AIG ins. ltd. ltd 3 4 6 2 3 2 1 1 278 1.33 2 0.67 1 0.67 0.33 0.33 92.67

No. Res. 1 %

companies of T.I
2 0.33 1 0.67 1.33 10.67 0.33 N.I.L N.I.A.L 92.67 O.I.L U.I.L ICICI

Interpretation: The above chart shows that the % of respondent having theft insurance of particular company. As per our research out of 100%, 1. 2. 3. 4. 5. 6. 7. 8. 9. 1% people having theft insurance of national ins. Co. ltd. 1.33% people having theft insurance of new India assurance co.ltd 2.% people having theft insurance of oriental ins. Co. ltd. 0.67% people having theft insurance of united insurance co. ltd. 1% people having theft insurance of icici Lombard 0.67% people having theft insurance of Bajaj Allianz 0.33% people having theft insurance of Tata AIG 0.33% people having theft insurance of Others 92.67% people not have theft insurance .from the above chart, we can say that maximum no. of people having i9ns. Of others company than mentioned above

268

34 premium of theft ins. 1 3 2 6 2 3 3 1 4 3 1 5 3 1 6 4 1.33 7 blank total 278 300 92.67 100

No. of respondent 1 %

premium of theft ins.


0 0 12 1 1 11.33 0 1 2 3 4 5 6 7 92.67 blank

Interpretation: The above mention chart shows that the % of respondents rank premium as a factor they consider while buying theft .ins. 1st rank shows that people give first priority to premium and people who give 7 rank . for them it is less important no. of respondent give 1st Rank,1% no. of respondent gives 3rd & 4th rank of the premium of theft insurance.

269

35 cash less benefit of theft ins. 1 3 2 5 1.67 3 3 1 4 8 2.67 5 2 0.67 6 1 0.33 7 blank Others 278 300 92.67 100

No.of respondent 1 %

cash less benefit


1.671 2.67 1 1 2 3 4 5 92.67 6 7 blank 0.67 00.33

Interpretation: Above chart show that the % of people are considered cash less benefit as a factor while buying theft insurance. Out of 100% ,1% people give first rank to cash less benefit. Out of 100% ,0 people give 6th rank to cash less benefit As per our research ,we can say that maximum no. of people give priority to cash less benefit as a factor.

270

36 Age coverage 1 1 2 3 1 3 4 1.33 4 2 0.67 5 6 2 6 6 2 7 blank Total 278 300 92.67 100

No.of respondent 0.33 %

age coverage
0.67 1 1.33 0.33 2 0 2 1 2 3 4 5 92.67 6 7 blank

Interpretation: The above chart show that how far people considered Age coverage as a factor while buying theft insurance. As per our research, out of 100%,0.33% people give first priority to age coverage. out of 100%,2% people give 6th rank to age coverage As per our research, there is no much more difference between people giving first and last priority to age coverage

271

37 family coverage 1 6 2 4 1.33 3 2 0.67 4 3 1 5 4 1.33 6 3 1 7 blank Total 278 300 92.67 100

No.of respondent 2 %

family coverage
0.67 1.33 1 1.331 0 2 1 2 3 4 5 92.67 6 7 blank

Interpretation: The above chart show that the % of people giving different priority to family coverage. As per our research ,out of 100%,2% people give first rank to the family coverage. out of 100%,1% people give 6th rank to the family coverage

272

38 company 1 7 2 3 1 3 4 1.33 4 3 1 5 5 1.67 6 7 blank Total 278 300 92.67 100

No. of respondent 2.33 %

company
2.33 1 1.33 1 0 1.67 0 1 2 3 4 5 92.67 6 7 blank

Interpretation As per our relation maximum no. of people have given 6th rank which shows less important company as a factor while buying theft insurance As per our research ,out of 100%,2.33% people give first rank to the company out of 100%,no any one people give seven rank to the company

273

39 speed claim settlement 1 2 2 1 0.33 3 5 1.67 4 3 1 5 2 0.67 6 8 2.67 7 1 0.33 blank Total 278 300 92.67 100

No. of respondent 0.67 %

speed claim settlement


0.33 0.67 0.67 1.671 2.67 0.33 1 2 3 4 5 92.67 6 7 blank

Interpretation: The above chart shows that how far people considered speed of claim settlement as a factor while buying theft insurance As per our research, maximum no. of people rank 6th rank which shows speed of claim settlement is less important for them.As per our research ,out of 100%,0.67% people give first rank to the speed of claim settlement. out of 100%,0.33% people give seven rank to the speed of claim settlement.

274

40 others 1 2 1 0.33 3 4 5 6 7 21 7 blank totle 278 300 92.67 100

No. of respondent %

others
0.33 00 0 7 1 2 3 4 5 92.67 6 7 blank

Interpretation: Above chart show that how far people considered others benefit as factor while buying theft insurance .Out of 100%,no any one people give first rank to the others as a factor. Out of 100%,7% people give seven rank to the others as a factor. Maximum no. of people give 7thrank to the others. Which means majority of people considered above mentioned factor rather than others.

275

41 how much premium you pay >2000 4 No. of respondent 1.33 % 2001 to 5000 7 2.33 5001 to 8000 8 2.67 <8000 3 1 Blank 278 92.67 total 300 100

how much pri. You pay


1.33 2.33 2.67 1

>2000 2001-5000 5001-8000 <8000 92.67 blank

Interpretation: Above chart show that how far people considered others benefit as factor while buying theft insurance .Out of 100%,1.33% people pay premium less than 2000. Out of 100%,maximum1% people pay the premium more than 8000rs Which means majority of people considered above mentioned factor rather than others.

276

42 satisfied with services by theft ins. yes 20 6.67 no 2 0.67 blank 278 92.67 total 300 100

No. of respondent %

satisfide of services by theft ins


0 6.67 0.67

yes no blank 92.67

Interpretation: Here ,we have segmented our total sample size according to whether they are satisfied with services given by theft insurance or not. As per our research out of 100% ,6.67% people are satisfied with services given by theft insurance. As per our research out of 100% ,0.67% people are not satisfied with services given by theft insurance .So ,we can say that maximum no. of people satisfied with services given by theft insurance.

277

43 changes of theft ins. Company yes 2 0.67 no 20 6.67 blank 278 92.67 Total 300 100

No. of respondent %

changes of theft ins. Company


0 0.67 6.67

yes no blank 92.67

Interpretation: Here ,we segmented our total sample size according to whether they want to change their company or not.As per our research out of 100%, 0.67% people want to change their insurance company. As per our research out of 100%,6.67% people not want to change their insurance company.We can see from the above chart maximum no. of people loyal towards their insurance company.

278

44 if yes, why? High pre. Poor Poor cash less services 1 0.33 others blank 299 99.67 Total 300 100

No. of respondent %

if yes,why?
0.33 0 0

high pre. poor cash less poor services others 99.67 blank

Interpretation: Here we segmented our total sample size of changing in theft insurance in this chart there are so many reasons High premium , poor cash less & service , less dieses & other reasons consider . In our sample size 300 respondent maximum reasons is high premium in the theft insurance it 0.33%. In this 300 respondent out of 100 99.67% no. of respondent is not change the health insurance co.

279

45 accident ins. companies National New Oriental United ICICI Bajaj TATA Others blank ins. ltd. india ins.ltd. ins. Lombard Allianz AIG ins. ltd. ltd 23 17 23 16 18 15 4 13 171 5.67 7.67 5.33 6 5 1.33 4.33 57

No. Res. 7.67 %

accident ins. Companies


7.67 5.67 7.67 5.33 57 6 5 1.33 4.33 n.i.c.l n.i.a.c.l o.c.l u.c.l icici lombard bajaj allianz

Interpretation: The above chart shows that the % of respondent having theft insurance of particular company. As per our research out of 100%, 1. 2. 3. 4. 5. 6. 7. 8. 9. 7.67% people having accident insurance of national ins. Co. ltd. 5.67% people having accident insurance of new India assurance co.ltd 7.67% people having accident insurance of oriental ins. Co. ltd. 5.33% people having accident insurance of united insurance co. ltd. 6% people having accident insurance of icici Lombard 5% people having accident insurance of Bajaj Allianz 1.33% people having accident insurance of Tata AIG 4.33% people having accident insurance of Others 57% people not have accident insurance .from the above chart, we can say that maximum no. of people having i9ns. Of others company than mentioned above

280

46 premium of accident ins. 1 29 2 28 9.33 3 27 9 4 19 6.33 5 19 6.33 6 5 1.67 7 2 0.67 blank total 171 300 57 100

No. Of respondent 9.67 %

premium of accident ins.


9.67 9.33 9 57 6.33 6.33 1 2 3 4 5 6 7 blank 0.67 1.67

Interpretation: The above mention chart shows that the % of respondents rank premium as a factor they consider while buying accident .ins. 1st rank shows that people give first priority to premium and people who give 7 rank . for them it is less important.9.67% no. of respondent give 1st Rank,9.% no. of respondent gives 3rd rank of the premium of accident insurance. and 0.67% no of respondents give 7th rank premium of accident ins.

281

47 cash less benefit 1 15 2 17 5.67 3 23 7.67 4 41 13.67 5 24 8 6 7 2.33 7 2 0.67 blank total 171 300 57 100

No. Of respondent 5 %

cash less benefit


5 5.67 7.67 13.67 57 8 1 2 3 4 5 6 7 2.33

0.67

Interpretation: Above chart show that the % of people are considered cash less benefit as a factor while buying health insurance. Out of 100% ,5% people give first rank to cash less benefit. Out of 100% ,0.67 people give seven rank to cash less benefit As per our research ,we can say that maximum no. of people give priority to cash less benefit as a factor.

282

48 age coverage 1 19 2 22 7.33 3 19 6.33 4 17 5.67 5 33 11 6 18 6 7 1 0.33 blank Total 171 300 57 100

no. of respondent 6.33 %

age coverage
6.33 7.33 6.33 5.67 57 11 6 1 2 3 4 5 6 7 blank 0.33

Interpretation: The above chart show that how far people considered Age coverage as a factor while buying accident insurance. As per our research, out of 100%,6.33% people give first priority to age coverage. out of 100%,0.33% people give seven rank to age coverage. As per our research, there is no much more difference between people giving first and last priority to age coverage.

283

49 family coverage 1 31 2 21 7 3 20 6.67 4 13 4.33 5 20 6.67 6 21 7 7 3 1 blank total 171 300 57 100

No. of respondent 10.33 %

family coverage
10.33 1 6.67 4.33 57 7 6.67 2 3 4 5 6 7

Interpretation: The above chart show that the % of people giving different priority to family coverage. As per our research ,out of 100%,10.33% people give first rank to the family coverage. out of 100%,1% people give seven rank to the family coverage. In 57 % no of respondents no take the this factors.

284

50 company 1 17 No. of respondent 5.67 % 2 22 7.33 3 16 5.33 4 16 5.33 5 20 6.67 6 34 11.33 7 4 1.33 blank total 171 57 300 100

company
5.67 7.33 5.33 5.33 6.67 57 11.33 1 2 3 4 5 6 7 blank 1.33

Interpretation As per our relation maximum no. of people have given 6th rank which shows less important company as a factor while buying accident insurance As per our research ,out of 100%,5.67% people give first rank to the company out of 100%,1.33 people give seven rank to the company as a factor of choosing insaurance.

285

51 speed claim settlement 1 16 2 15 5 3 22 7.33 4 22 7.33 5 9 3 6 41 13.67 7 4 1.33 blank total 171 300 57 100

No. of respondent 5.33 %

speeds claim sattlement


5.33 5 1 7.33 3 57 13.67 2 3 4 5 6 7 blank 1.33

7.3

Interpretation: The above chart shows that how far people considered speed of claim settlement as a factor while buying accident insurances per our research, maximum no. of people rank 6th rank which shows speed of claim settlement is less important for them. As per our research ,out of 100%,5.33% people give first rank to the speed of claim settlement. out of 100%,1.33% people give seven rank to the speed of claim settlement.

286

52 others 1 2 2 5 1.67 3 2 0.67 4 1 0.33 5 4 1.33 6 3 1 7 112 37.33 blank total 171 300 57 100

No.of respondent 0.67 %

1.67 0.67

others
0.67

0.33 1.33 1 1 2 37.33 3 4 5 6 7 blank

57

Interpretation: Above chart show that how far people considered others benefit as factor while buying health insurance. Out of 100%, 0.67% people give first rank to the others as a factor. Out of 100%, 37.33% people give seven rank to the others as a factor. Maximum no. of people give 7thrank to the others. Which means majority of people considered above mentioned factor rather than others?

287

53 how much premium you pay <2000 44 2001to5000 5001to8000 >8000 61 14 10 20.33 4.67 3.33 blank 171 57 Total 300 100

No. of respondent 14.67 %

how much premium you pay


14.67 <2000 2001to5000 5001to8000 4.67 3.33 >8000 blank

20.33 57

Interpretation: Above chart show that how far people considered others benefit as factor while buying fire insurance. Out of 100% ,14.67% people give first rank to the others as a factor .Out of 100%,3.33% people give more than 8000 payment of accident . This means majority of people considered above mentioned factor rather than others. In this majority peoples pay premium 2001 to 5000.

288

54 satisfied with services given by accident ins. yes 124 41.33 No 5 1.67 Blank 171 57 total 300 100

No. of respondent %

satisfied with service by a.i.

41.33 yes no blank

57

1.67

Interpretation: Here ,we have segmented our total sample size according to whether they are satisfied with services given by accident insurance or not. As per our research out of 100%, 41.33% people are satisfied with services given by accident insurance. As per our research out of 100% ,1.67% people are not satisfied with services given by accident insurance. So, we can say that maximum no. of people satisfied with services given by accident insurance.

289

55 want to change insurance company yes 22 7.33 no 107 35.66 blank 171 57 total 300 100

No. of respondent %

change insurance company


0 7.33

35.66 57

yes no blank

Interpretation: Here ,we segmented our total sample size according to whether they want to change their company or not. As per our research out of 100%, 7.33% people want to change their insurance company. As per our research out of 100%, 35.66% people not want to change their insurance company. We can see from the above chart maximum no. of people loyal towards their insurance company.

290

56 If yes, than why? High pre. 8 Poor cash less 1 0.33 Poor services 9 3 others 1 0.33 blank 281 93.67 total 300 100

No. of respondent 2.67 %

if yes,than why?
0.33 2.67 3 high pre. poor cash less poor services others 93.67 0.33

Interpretation: Here we segmented our total sample size of changing in health insurance in this chart there are so many reasons High premium , poor cash less & service , less dieses & other reasons consider . In our sample size 300 respondent maximum reasons ishigh premium in the accident insurance it is 2.67%. In this 300 respondent out of 100 0.33% no. of respondent change the accident insurance co. Bcz poor cash less. & .93.67% no. of respondent which is not change insurance co. Bcz then they loyal customers.

291

57 companies of vehicle insurance n.i.c.o n.i.a.c.o o.c.o u.i.i.c.o icici bajaj tata other blank 18 22 17 16 30 28 11 23 135 7.33 5.67 5.33 10 9.33 3.67 7.67 45

No. of respondent 6 %

which company insurance


7.33 6 45 10 7.67 9.33 n.i.co 5.67 5.33 n.iaco onco u.i.i.c.o icici lombard bajaj aalliaz 3.67 tata aig

Interpretation: The above chart shows that the % of respondent having theft insurance of particular company. As per our research out of 100%, 1. 2. 3. 4. 5. 6. 7. 8. 9. 6% people having vehicle insurance of national ins. Co. ltd. 7.33% people having vehicle insurance of new India assurance co.ltd 5.67.% people having vehicle insurance of oriental ins. Co. ltd. 5.33% people having vehicle insurance of united insurance co. ltd. 10% people having vehicle insurance of icici Lombard 9.33% people having vehicle insurance of Bajaj Allianz 3.67% people having vehicle insurance of Tata AIG 7.67% people having vehicle insurance of Others 45% people not have vehicle insurance .from the above chart, we can say that maximum no. of people having i9ns. Of others company than mentioned above.

292

58 premium 1 44 2 34 11.33 3 38 12.67 4 31 10.33 5 10 3.33 6 8 2.67 7 blank total 135 300 45 100

No. of respondent 14.67 %

premium of vehicle insurance


0 0 1 14.67 45 11.33 2 3 4 12.67 5 6 2.67 3.33 10.33 7 blank

Interpretation: The above mention chart shows that the % of respondents rank premium as a factor they consider while buying accident .ins. 1st rank shows that people give first priority to premium and people who give 7 rank . for them it is less important.14.67% no. of respondent give 1st Rank and no anyone no. of respondent gives 7thrank of the premium of vehicle insurance

293

59 cash less benefit 1 21 2 25 8.33 3 28 9.33 4 45 15 5 30 10 6 15 5 7 1 0.33 blank total 135 300 45 100

No. of respondent 7 %

cash less benefit


7 45 8.33 9.33 1 2 3 15 4 5 6 7 blank 0.33

10

Interpretation: Above chart show that the % of people are considered cash less benefit as a factor while buying vehicle insurance. Out of 100% ,7% people give first rank to cash less benefit. Out of 100% ,0.33 people give seven rank to cash less benefit As per our research ,we can say that maximum no. of people give priority to cash less benefit as a factor.

294

60 Age coverage 1 15 2 22 7.33 3 21 7 4 33 11 5 43 14.33 6 28 9.33 7 3 1 blank total 135 300 45 100

No. of respondent 5 %

age covrager
5 45 11 7.33 7 1 2 3 4 14.33 9.33 5 6 7 blank 1

Interpretation: The above chart show that how far people considered Age coverage as a factor while buying health insurance. As per our research, out of 100%,5% people give first priority to age coverage. out of 100%,1% people give seven rank to age coverage. As per our research, there is no much more difference between people giving first and last priority to age coverage

295

61 family coverage 1 39 2 32 10.67 3 30 10 4 15 5 5 31 10.33 6 27 9 7 1 0.33 blank Total 135 300 45 100

No. of respondent 13 %

family coverage
13 45 10.67 10 5 9 10.33 1 2 3 4 5 6 7 blank 0.33

Interpretation: The above chart show that the % of people giving different priority to family coverage. As per our research ,out of 100%,13% people give first rank to the family coverage. Out of 100%,0.33% people give seven rank to the family coverage. In this maximum people give 2nd & 5th rank factor s a family coverage.

296

62 company 1 24 2 29 9.67 3 23 7.67 4 20 6.67 5 25 8.33 6 36 12 7 7 2.33 Blank total 136 300 45.33 100

No. of respondent 8 %

company
8 9.67 45.33 7.67 6.67 8.33 12 1 2 3 4 5 6 7

2.33

Interpretation: As per our relation maximum no. of people have given 6th rank which shows less important company as a factor while buying health insurance As per our research ,out of 100%,8% people give first rank to the company out of 100%,2 .33people give seven rank to the company

297

63 speed claim settlement 1 21 2 23 7.67 3 35 11.67 4 18 6 5 18 6 6 44 14.67 7 6 2 blank total 135 300 45 100

No. of respondent 7 %

speed claim sattlement


7 45 7.67 11.67 6 6 2 14.67 1 2 3 4 5 6 7 blank

Interpretation: The above chart shows that how far people considered speed of claim settlement as a factor while buying vehicle insurance As per our research, maximum no. of people rank 6th rank which shows speed of claim settlement is less important for them. As per our research ,out of 100%,7% people give first rank to the speed of claim settlement. out of 100%,2% people give seven rank to the speed of claim settlement.

298

64 others 1 3 2 3 1 3 4 2 0.67 5 7 2.33 6 6 2 7 144 48 blank total 135 300 45 100

No. of respondent 1 %

others
10 1 45

0.67 2.33 2 1 2 3 48 4 5 6 7

Interpretation: Above chart show that how far people considered others benefit as factor while buying vehicle insurance. Out of 100%,1% people give first rank to the others as a factor. Out of 100%,48% people give seven rank to the others as a factor. Maximum no. of people give 7thrank to the others. This means majority of people considered above mentioned factor rather than others.

299

65 how much premium you pay <2000 77 No. of respondent 25.67 % 20005000 49 16.33 50018000 27 9 >8000 11 3.67 Blank 136 45.33 total 300 100

how much pre.you pay

25.67 45.33 <2000 2001-5000 16.33 5001-8000 >8000 3.67 9

Interpretation: Above chart show that how far people considered others benefit as factor while buying vehicle insurance.Out of 100%, 25.67% people give first rank to the others as a factor. Out of 100%,3.67% people give seven rank to the others as a factor. Maximum no. of people give premium more then 8000. Which means majority of people considered above mentioned factor rather than others.

300

66 satisfied with services yes 160 53.33 no 5 1.67 blank 135 45 total 300 100

No. of respondent %

satisfide with services


0

135 yes 160 no 3rd Qtr 5

Interpretation: Here ,we have segmented our total sample size according to whether they are satisfied with services given by health insurance or not. As per our research out of 100% ,50.33% people are satisfied with services given by vehicle insurance. As per our research out of 100% ,1.67% people are not satisfied with services given by vehicle insurance. So ,we can say that maximum no. of people satisfied with services given by vehicle insurance.

301

67 want to change your ins. Company yes 21 7 no 142 47.33 blank 142 47.33 total 300 100

No. of respondent %

change your ins.company?


0 7 45.67 yes 47.33 no blank 4th Qtr

Interpretation: Here ,we segmented our total sample size according to whether they want to change their company or not. As per our research out of 100%, 7% people want to change their insurance company. As per our research out of 100%, 47.33% people not want to change their insurance company. We can see from the above chart maximum no. of people loyal towards their insurance company.

302

68 if yes than why? High Poor premium cash less 9 3 1 Poor services 7 2.33 others blank 281 93.67 total 300 100

No. of respondent 3 %

if yes , then why?


2.33 1 0 3 high pre. poor cash less poor services others 93.67 blank

Interpretation: Here we segmented our total sample size of changing in health insurance in this chart there are so many reasons High premium , poor cash less & service , less dieses & other reasons consider . In our sample size 300 respondent maximum reasons is poor service in the vehicle insurance it is 3%. In this 300 respondent out of 100 3% no. of respondent change the vehicle insurance co. Bcz high premium & .0.67% no. of respondent no change in insurance com. Bcz they are loyal customers.

303

6.2 Cross Tabulation Analysis


6.2.1. Income and payment of INS premium A. Health ins.: Income Pay. Of prem. <2000 2001-5000 5001-8000 >8000 total <20000 2000030000 3000040000 >40000 Total

55 26 6 0 87

23 54 16 8 101

3 15 13 4 35

3 4 11 16 34

84 99 46 28 257

income & payment of premium


60 50 40 p.o.p 30 20 10 0 <2000 2001-5000 income 5001-8000 >8000 <20000 23 26 15 3 3 4 6 0 16 16 11 8 4 20000-30000 13 30000-40000 >40000 55 54

304

Interpretation: From the above chart we can show that Relation between health ins. Premium and payment of premium. In this diagram x axes shows that income of customers and Y axes shows that Number of payment 0f premium. In this health insurance Maximum peoples income are 20000 to 30000. Than total 87 peoples income are less than 20000. And 35 peoples incomes are between 30000 to 40000. Also 34 peoples incomes are more than 40000. Here total 55 people are pay premium of health insurance less than 2000 rs of health insurance whose income are less than 20000. Total 23 peoples incomes are between 20000 to 30000. And 3 peoples income are more than 40000 whose pay premium less than 2000rs. Here total 99 peoples pay premium amount between 2001 to 5000. And in this peoples maximum peoples income are 20000 to 30000. In this less number of peoples income are more than 40000. Here total 28 peoples pay premium more than 8000 rs. In this no any one peoples income are less than 2000rs. Here total 8 peoples incomes are between 20000 to 30000 whose pay more than 8000 rs premium of health insurance. Total 257 peoples buy Health insurance. In this total 84 peoples pay premi um less than 2000rs. Total 99 peoples pay premium 2001 to 5000 rs. Also 46 peoples pay more than 5000rs. But here less number of 28 peoples pay premium more than 8000.

305

B. Fire ins.: Income Pay. Of prem. <2000 2001-5000 5001-8000 >8000 total 5 1 0 0 6 <20000 2000030000 3000040000 >40000 Total

0 5 2 0 7

0 1 1 0 2

0 4 2 4 10

5 11 5 4 25

income & payment of premium


6 5 4 p.o.p 3 2 1 0 <2000 2001-5000 income 5001-8000 >8000 <20000 20000-30000 30000-40000 >40000

306

Interpretation: From the above chart we can show that Relation between fire ins. Premium and payment of premium. In this diagram x axes shows that income of customers and Y axes shows that Number of payment 0f premium. In this fire insurance Maximum peoples income are more than 40000. Than total 6 peoples income are less than 20000. And 2 peoples incomes are between 30000 to 40000. Here total 5 peoples are pay premium of fire insurance less than 2000 rs whose income are less than 20000. In this fire insurance no any one peoples pay premium less than 2000rs. Here total 11 peoples pay premium amount between 2001 to 5000rs. And in this peoples maximum peoples income are 20000 to 30000. In this less number of peoples income are more than 20000. Here total 4 peoples pay premium more than 8000 rs. In this no all peoples income are more than 40000 whose pay premium more than 8000 rs. Here lower levels peoples not pay premium more than 8000.

307

C.Theft ins.: Income Pay Of prem. <2000 2001-5000 5001-8000 >8000 Total 3 4 0 9 7 <20000 2000030000 3000040000 >40000 Total

0 6 0 0 6

0 0 0 0 0

1 3 2 3 9

4 7 8 3 22

income & payment of premium


7 6 6 5 4 p.o.p 4 3 3 2 2 1 1 0 0 <2000 2001-5000 income 5001-8000 >8000 0 0 0 0 3 3 <20000 20000-30000 30000-40000 >40000

308

Interpretation: From the above chart we can show that Relation between theft ins. Premium and payment of premium. In this diagram x axes shows that income of customers and Y axes shows that Number of payment 0f premium. In this Theft insurance Maximum peoples income are more than 40000 . Than total 7 peoples income are less than 20000. And no any peoples incomes are between 30000 to 40000. Also 9 peoples incomes are more than 40000. Here total 4 people are pay premium of Theft insurance less than 2000 rs in this maximum peoples whose income are less than 20000. Upper level peoples pay premium always more than 5000 and more than 8000.in this maximum 8 peoples pay premium 5001 to 8000 rs. Total 22 peoples buy theft insurance. In this total 4 peoples pay premium less than 2000rs. Total 7 peoples pay premium 2001 to 5000 rs. Also 8 peoples pay more than 5000rs. But here less number of peoples pay premium more than 8000.

309

D. Accident ins.: Income Pay. Of prem. <2000 2001-5000 5001-8000 >8000 total <20000 2000030000 3000040000 >40000 Total

14 16 3 0 33

21 31 4 2 58

4 9 4 2 19

5 5 3 6 19

44 61 14 10 129

income & payment of premium


35 30 25 p.o.p 20 15 10 5 0 <2000 2001-5000 income 5001-8000 >8000 4 5 14 21 16 9 5 3 4 4 3 0 6 2 2 <20000 20000-30000 30000-40000 >40000 31

310

Interpretation: From the above chart we can show that Relation between accident ins. Premium and payment of premium. In this diagram x axes shows that income of customers and Y axes shows that Number of payment 0f premium. In this Accident insurance Maximum 58 peoples income are 20000 to 30000. Than total 33 peoples income are less than 20000. And 19 peoples incomes are between 30000 to 40000. Also 19 peoples incomes are more than 40000. Here total 14 people are pay premium of Accident insurance less than 2000 rs whose income are less than 20000. Total 21 peoples incomes are between 20000 to 30000. And 5 peoples income are more than 40000 whose pay premium less than 2000rs. Here maximum 61 peoples pay premium amount between 2001 to 5000rs. And in this peoples maximum 31 peoples income are 20000 to 30000. In this less number of peoples income are more than 40000. Here total 10 peoples pay premium more than 8000 rs. In this no anyone peoples income are less than 2000rs. Here total 2 peoples incomes are between 20000 to 30000 whose pay more than 8000 rs premium of Accident insurance. Total 129 peoples buy Accident insurance. In this total 44 peoples pay premium less than 2000rs. Total 61 peoples pay premium 2001 to 5000 rs. Also 14 peoples pay more than 5000rs. But here less number of peoples pay premium more than 8000.

311

E. Vehicle ins.: Income Pay. Of prem. <2000 2001-5000 5001-8000 >8000 total 31 9 2 0 42 <20000 2000030000 3000040000 >40000 Total

29 22 9 4 64

5 11 11 0 27

11 7 5 8 31

76 49 27 12 164

income & payment of premium


35 30 25 p.op 20 15 10 5 5 0 <2000 2001-5000 income 5001-8000 >8000 11 11 7 2 11 8 5 0 4 0 31 29 22 <20000 20000-30000 9 9 30000-40000 >40000

312

Interpretation: From the above chart we can show that Relation between vehicle ins. Premium and payment of premium. In this diagram x axes shows that income of customers and Y axes shows that Number of payment 0f premium. In this vehicle insurance Maximum 64 peoples income are 20000 to 30000. Than total 42 peoples income are less than 20000. And 27 peoples incomes are between 30000 to 40000. Also 31 peoples incomes are more than 40000. Here total 31 people are pay premium of Vehicle insurance less than 2000 rs whose income are less than 20000. Total 29 peoples incomes are between 20000 to 30000. And 11 peoples income are more than 40000 whose pay premium less than 2000rs. Here total 49 peoples pay premium amount between 2001 to 5000. And in this peoples maximum peoples income are 20000 to 3000 0. In this less number of peoples income are 30000 to 40000. Here total 12 peoples pay premium more than 8000 rs. In this no anyone peoples income are less than 20000. Here total 4 peoples incomes are between 20000 to 30000 whose pay more than 8000 rs premium of vehicle insurance. Total 164 peoples buy Vehicle insurance. In this total 76 peoples pay premium less than 2000rs. Total 49 peoples pay premium 2001 to 5000 rs. Also 27 peoples pay more than 5000rs. But here less number of 12 peoples pay pr emium more than 8000.

313

6.2.2 Income and factors of INS. A: Health insurances: 1. Income & premium: income rank 1 2 3 4 5 6 7 total <20000 17 14 20 27 9 0 1 88 2000030000 16 23 28 14 15 5 0 101 3000040000 5 14 8 5 3 0 0 35 >40000 5 5 10 6 5 3 0 34 total 43 56 66 52 32 8 1 258

income & premium


30 25 20 Income 15 10 55 5 0 1 2 3 4 Ranks 5 6 7 5 23 20 17 16 14 14 10 8 5 6 3 0 0 14 9 5 5 3 1 000 15 <20000 20000-30000 30000-40000 >40000 28 27

314

Interpretation: From the above chart we can show that Relation between health ins. Premium and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers.. Form the above chart we can say that maximum people give 3 rd rank to premium for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to premium for buying health ins. There are total 43 people who give 1st rank to premium. Out of which 17 people income is less then 20000, 16 people income are 20000 to 30000. And 5 people income are 30000 to 40000. And also in this peoples income more than 40000. There are 56 people who give 2nd rank to the premium out of which, 14 peoples income are less than 20000. And 23 peoples income are 20000 to 30000.and 5 peoples income are more then 20000. There are total 52 peoples who give 4th rank to the premium for buying health insurance out of which ,27 peoples income are less than 2oooo.14 peoples incomes are 20000 to 30000. 5 peoples incomes are 30000 to40000 and 6 peoples incomes are more then 40000. There are total 52 peoples give 5th rank to the premium for buying health ins. Out of which 9 peoples income are less than 20000. Here total 258 peoples give important where buy heath insurance. In this total 88 peoples income are less than 20000rs and maximum 1o1 peoples income are 20000 to 30000.and less than pepoles income are more than 40000rs.

315

2. Income& cash less benefit: Income Rank 1 2 3 4 5 6 7 total <20000 16 23 21 10 14 3 1 102 2000030000 16 8 14 30 20 10 3 101 3000040000 2 1 11 7 7 7 0 35 >40000 4 6 7 11 5 1 0 34 Total 38 38 53 58 46 21 4 272

income & cash less benefit


35 30 30 25 cash less 20 15 10 5 0 1 2 3 4 income 5 6 7 2 4 1 8 6 16 16 23 21 14 11 7

20 <20000 14 10 7 11 7 5 10 7 3 1 1 3 00 20000-30000 30000-40000 >40000

316

Interpretation: From the above chart we can show that Relation between cash less benefit and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers. Form the above chart we can say that maximum people give 4th rank to cash less benefit for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to cash less benefit for buying health ins. There are total 38 people who give 1st rank to . Out of which 16 people income are <20000, 16 people income are 20000 to 30000. And 2 people income are 30000 to 40000. And also in this peoples income more than 40000. There are 38 people who give 2nd rank . Out of which, 23 peoples income are less than 20000. And 8 peoples income are 20000 to 30000.and 7 peoples income are more then 20000. There are total 58 peoples who give 4th rank to the premium for buying health insurance out of which ,3o peoples income are 20000 to 30000.In this ma ximum peoples incomes are less than 20000 and 1o1 peoples incomes are 20000 to30000 and 34 peoples income are more then 40000. There are total 46 peoples give 5th rank. for buying health ins. Out of which 14 peoples income are less than 20000.. Here total 272 peoples give important where buy health insurance. In this total 102 peoples income are less than 20000rs and maximum 1o1 peoples income are 20000 to 30000.and less than 34 peoples income are more than 40000rs.

317

3. Income& Age coverage: Income Rank 1 2 3 4 5 6 7 total <20000 6 12 19 15 19 13 4 88 2000030000 9 18 22 21 24 7 0 101 3000040000 1 5 6 7 7 7 2 35 >40000 1 6 6 4 12 4 1 34 Total 17 41 53 47 62 31 7 258

Income & age coverage


30 25 20 age cov. 15 10 6 5 11 0 1 2 3 4 income 5 6 7 9 5 6 66 7 4 7 77 4 4 2 0 1 18 12 24 22 19 15 12 13 21 19 <20000 20000-30000 30000-40000 >40000

318

Interpretation: From the above chart we can show that Relation between age coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. Form the above chart we can say that maximum people give 5th rank to age coverage for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to premium for buying health ins. There are total 17 people who give 1st rank to age coverage. Out of which 6 people income are <20000, 9 people income are 20000 to 30000. An d only one persons income more than 40000. There are 41people who give 2nd rank to the age coverage out of which, 88 peoples income are less than 20000. And 101 peoples income are 20000 to 30000.and 34 peoples income are more then 20000. There are total 47 peoples who give 4th rank to age coverage the for buying health insurance out of which ,15 peoples income are less than 2oooo.21 peoples incomes are 20000 to 30000. 7 peoples incomes are 30000 to40000 and 4 peoples incomes are more then 40000. There are 62peoples give 5th rank to the age coverage for buying health ins. Out of which 24 peoples income are 20000 to 30000. Here total 258 peoples give important where buy health insurance. In this total 88 peoples income are less than 20000rs and maximum 1o1 peoples income are 20000 to 30000.and less than 34 peoples income are more than 40000rs.

319

4. Income& family coverage: Income Rank 1 2 3 4 5 6 7 total <20000 28 15 7 8 11 16 3 88 2000030000 49 21 9 6 9 7 0 101 3000040000 16 7 2 3 3 1 3 35 >40000 20 6 3 4 0 1 0 34 Total 113 49 21 21 23 25 6 258

income & family coverage


60 50 40 30 20 10 0 1 2 3 4 income 5 6 7 28 21 20 16 15 76 7 9 23 8 11 6 34 9 3 0 16 7 11 3 0 3 0 <20000 20000-30000 30000-40000 >40000 49

family cov.

320

Interpretation: From the above chart we can show that Relation between family coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. Form the above chart we can say that maximum people give 1th rank to family coverage for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to family coverage for buying health ins. There are total 113 people who give 1st rank to Family coverage. Out of which 88 people income are <20000, 101 people income are 20000 to 30000. And 35 people income are 30000 to 40000. And also in this 20 peoples income more than 40000. There are 49 people who give 2nd rank to the family coverage out of which, 15 peoples income are less than 20000. And 21 peoples income are 20000 to 30000.and 6 peoples income are more then 20000. In this health insurances comparison of income and family coverage prove that maximum peoples assure the health ins . all those income are 20000 to 30000. In this total 88 peoples income are less than 20000. And also 1o1 peoples income are 20000 to 30000. Also in this peoples income are more than 40000 it is 34 peoples. There are total 23 peoples give 5th rank. for buying health ins. Out of which 11peoples income are less than 20000.. Here total 258 peoples give important to where buy health insurance. In this total 88 peoples income are less than 20000rs and maximum 1o1 peoples income are 20000 to 30000.and less than 34 peoples income are more than 40000rs

321

5. Income& company: Income Rank 1 2 3 4 5 6 7 total <20000 13 15 7 14 16 18 5 88 2000030000 4 21 16 13 22 24 1 101 3000040000 5 3 2 6 9 10 0 35 >40000 3 5 4 5 6 11 0 34 Total 25 44 29 38 53 63 6 258

income & company


30 25 21 20 company 15 15 10 5 0 1 2 3 4 5 income 6 7 4 5 3 3 5 2 13 7 4 16 14 13 9 6 5 6 11 10 5 1 00 16 24 22 18 <20000 20000-30000 30000-40000 >40000

322

Interpretation: From the above chart we can show that Relation between health ins. company and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. Form the above chart we can say that maximum people give 6th rank to company for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give 7th rank to company for buying health ins.there income are more then 20000. There are total 25 people who give 1st rank to company Out of which 88 people income are <20000, 101 people income are 20000 to 30000. And 35 people income are 30000 to 40000. And also in this 34 peoples income more than 40000. There are44 people who give 2nd rank to the company out of which, 88 peoples income are less than 20000. And 101 peoples income are 20000 to 30000.and 34 peoples income are more then 20000. There are total 38 peoples who give 4th rank to company the for buying health insurance out of which ,88 peoples income are less than 2oooo.and 34 peoples are income more than 40000. 1o1 peoples incomes are 20000 to 30000. 35 peoples incomes are 30000 to40000 and 34 peoples incomes are more than 40000.6 peoples are giv e 7th rank in company factors so company is not important factors in this health ins. All those people. There are total 53 peoples give 5th rank to the company for buying health ins. Out Out of which 16 peoples income are less than 20000.. Here total 258 peoples give important to where buy health insurance. In this total 88 peoples income are less than 20000rs and maximum 1o1 peoples income are 20000 to 30000.and less than 34 peoples income are more than 40000rs

323

6. Income& speed claim settlement Income Rank 1 2 3 4 5 6 7 total <20000 9 5 11 11 7 36 9 88 2000030000 7 10 12 16 9 44 3 101 3000040000 3 3 6 5 6 9 3 35 >40000 1 6 5 4 4 14 0 34 Total 20 24 34 36 26 103 15 258

income & speed claim satt.


50 45 40 35 30 s.c.s. 25 20 15 10 5 0 1 2 3 4 income 5 6 7 9 7 3 1 10 5 3 6 12 11 65 16 11 54 7 9 6 9 4 14 9 33 0 <20000 20000-30000 30000-40000 >40000 44 36

324

Interpretation: From the above chart we can show that Relation between speed claim settlement and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. In buying health ins. There are so many factors important. But Form the above chart we can say that maximum people give 6th rank to speed claim settlement for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to speed clime settle met for buying health ins. There are total 20 people who give 1st rank to speed claim settlement. Out of which 88 people income are <20000, 101 people income are 20000 to 30000. And 35 people income are 30000 to 40000. And also in this 34 peoples income more than 40000. There are24 people who give 2nd rank to the s.c. settlement out of which, 88 peoples income are less than 20000. And 101 peoples income are 20000 to 30000.and 34 peoples income are more then 20000. There are total 36peoples who give 4th rank to s.c . Settlement the for buying health insurance out of which, 88 peoples income are less than 2oooo. 1o1 peoples incomes are 20000 to 30000. 1o1 peoples incomes are 30000 to40000 and 6 peoples incomes are more then 40000. There are total 103 peoples give 6th rank to the s.c. settlement for buying health ins. Out of which 34 peoples income are 20000 to 30000. There are total 26 peoples give 5th rank to the company for buying health ins. Out of which 7 peoples income are less than 20000.. Here total 258 peoples give important to where buy health insurance. In this total 88 peoples income are less than 20000rs and maximum 1o1 peoples income are 20000 to 30000.and less than 34 peoples income are more than 40000rs

325

7. Income& others: Income Rank 1 2 3 4 5 6 7 total <20000 1 4 3 1 12 2 65 88 2000030000 0 0 2 0 2 3 94 101 3000040000 2 1 1 16 0 1 28 49 >40000 0 0 0 0 1 0 33 34 Total 3 5 6 17 15 6 220 272

income & others


100 90 80 70 others 60 50 40 30 20 10 0 1 2 3 4 income 5 6 7 1020 4 010 3210 10 16 0 12 201 2310 33 28 65 <20000 20000-30000 30000-40000 >40000 94

326

Interpretation: From the above chart we can show that Relation between other factors and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. In buying health ins. There are so many factors important. But Form the above chart we can say that maximum people give 7th rank to others factors for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give 1st rank to others factors for buying health ins. There are total 3 people who give 1st rank to . Out of which 88 people income are <20000, 101 people income are 20000 to 30000. And 35 people income are 30000 to 40000. And also in this 34 peoples income more than 40000. There are5 people who give 2nd rank to the others factors out of which, 88 peoples income are less than 20000. And 101 peoples income are 20000 to 30000.and 34 peoples income are more then 20000. There are total 17 peoples who give 4th rank to others factors the for buying health insurance out of which, 88 peoples income are less than 2oooo.1o1 peoples incomes are 20000 to 30000. 1o1 peoples incomes are 30000 to40000 and 6 peoples incomes are more then 40000. There are total 220 peoples give 7th rank to the for buying health ins. Out of which 101 peoples income are 20000 to 30000. . Here total 272 peoples give important to where buy health insurance. In this total 88 peoples income are less than 20000rs and maximum 1o1 peoples income are 20000 to 30000.and less than 34 peoples income are more than 40000rs

327

B: Fire Insurances: 1. Income & premium: Income Rank 1 2 3 4 5 6 7 total <20000 0 1 0 1 0 0 0 2 2000030000 1 5 3 0 0 1 0 10 3000040000 0 1 0 1 0 0 0 2 >40000 4 3 0 1 2 0 0 10 Total 5 10 3 3 2 1 0 24

income & premium


6 5 5 4 4 premium 3 3 2 2 1 1 0 0 1 2 3 4 income 5 6 7 0 0 00 0 000 0 00 0000 1 1 1 11 1 3 <20000 20000-30000 30000-40000 >40000

328

Interpretation: From the above chart we can show that Relation between fire ins. Premium and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers.. Form the above chart we can say that maximum people give 2nd rank to premium for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to premium for buying fire ins. In this there are 5 peoples give 1st rank .10 peoples give 2nd rank and 3rd and 4th rank to fire insurance premium. There are total 2 peoples give 5th rank to the premium for buying fire ins. Out of which one peoples income are less than 20000. Here total 24 peoples give important where buy fire insurance. In this total 2 peoples income are less than 20000rs and maximum 10 peoples income are 20000 to 30000.and less than peoples income are more than 40000rs.

329

2. Income & cash less benefit: Income Rank 1 2 3 4 5 6 7 total <20000 0 0 0 1 1 0 0 2 2000030000 1 0 5 2 2 0 0 10 3000040000 0 0 1 0 1 0 0 2 >40000 2 0 0 6 2 0 0 10 total 3 0 6 9 6 0 0 24

income & cash less benefits


6 5 5 4 4 c.l.b 3 3 2 2 1 1 0 0 1 2 3 4 income 5 6 7 0 0 00 0 000 0 00 0000 1 1 1 11 1 3 <20000 20000-30000 30000-40000 >40000

330

Interpretation: From the above chart we can show that Relation between cash less benefit and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers. Form the above chart we can say that maximum people give 4th rank to cash less benefit for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to cash less benefit for buying fire ins. There are total 3 people who give 1st rank to . Out of which no anyone people incomes are <20000, 1 people income are 20000 to 30000. And 2 people income are. More than 40000. .There are total 9 peoples who give 4th rank to the cash less benefit for buying fire insurance out of which ,1peoples income are 20000 to 30000.In this maximum peoples incomes are 20000 to30000 and 6 peoples income are more then 40000. There are total 6 peoples give 5th rank. for buying fire ins. Out of which one peoples income are less than 20000.. Here total 24 peoples give important where buy fire insurance. In this total 2 peoples income are less than 20000rs and maximum 1o peoples income are 20000 to 30000.and less than 10peoples income are more than 40000rs.

331

3. Income & age coverage: Income Rank 1 2 3 4 5 6 7 total <20000 0 0 2 0 0 0 0 2 2000030000 0 2 0 2 5 1 0 10 3000040000 2 0 0 0 0 0 0 2 >40000 1 3 3 0 2 1 0 9 total 3 5 5 2 7 2 0 24

income & age coverage


6 5 5 age coverage 4 3 3 2 2 1 1 00 0 1 2 3 4 income 5 6 7 0 0 00 0 00 0 0 0 0 0000 1 1 2 2 2 2 3 <20000 20000-30000 30000-40000 >40000

332

Interpretation: From the above chart we can show that Relation between age coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. Form the above chart we can say that maximum people give 5th rank to age coverage for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th rank to age coverage for buying fire ins. There are total 3 people who give 1st rank to age coverage. Out of which no any people income are <20000, And only one persons income more than 40000.There are 5 people who give 2nd rank to the age coverage out of which, no any peoples income are less than 20000. And 2 peoples income are 20000 to 30000.and 3 peoples income are more then 20000. There are total 2 peoples who give 4th rank to age coverage the for buying fire insurance out of which Here all those pepoles income aren 20000 to 30000.There are 7 peoples give 5th rank to the age coverage for buying fire ins. Out of which 5 peoples income are 20000 to 30000. Here total 24 peoples give important where buy health insurance. In this total 2 peoples income are less than 20000rs and maximum 1o peoples income are 20000 to 30000.and less than 9 peoples income are more than 40000rs.

333

4. Income & family coverage: Income rank 1 2 3 4 5 6 7 total <20000 1 0 0 0 1 0 0 2 2000030000 6 1 1 1 0 1 0 10 3000040000 0 1 0 1 0 0 0 2 >40000 3 1 4 0 2 0 0 10 total 10 3 5 2 3 1 0 24

income&family coverage
7 6 6 family coverage 5 4 4 3 3 2 2 1 1 0 0 1 2 3 4 income 5 6 7 0 0 0 0 0 00 0 00 0000 111 1 11 1 1 <20000 20000-30000 30000-40000 >40000

334

Interpretation: From the above chart we can show that Relation between family coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. Form the above chart we can say that maximum people give 1th rank to family coverage for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to family coverage for buying fire ins. There are total10 people who give 1st rank to Family coverage. Out of which one people income are <20000, 6 people income are 20000 to 30000. And no anyone people income are 30000 to 40000. And also in this 3 peoples income more than 40000. There are 3 people who give 2nd rank to the family coverage out of which, no any peoples income are less than 20000. Those peoples are not buy fire insurance. And 21 peoples income are 20000 to 30000.and 6 peoples income are more then 20000. In this fire insurances comparison of income and family coverage prove that maximum peoples assure the fire ins . All those income are 20000 to 30000. There are total 3 peoples give 5th rank. for buying fire ins. Out of which maximum peoples income are more than 40000.. Here total 24 peoples give important to where buy fire insurance. In this total 2 peoples income a re less than 20000rs and maximum 10 peoples income are 20000 to 30000.and also 10 peoples income are more than 40000rs.

335

5. Income & company: Income Rank 1 2 3 4 5 6 7 total <20000 0 0 2 0 0 0 0 2 2000030000 0 2 0 2 5 1 0 10 3000040000 2 0 0 0 0 0 0 2 >40000 1 3 3 0 2 1 0 10 total 3 5 5 2 7 2 0 24

income&company
6 5 5 4 company 3 3 2 2 1 1 00 0 1 2 3 4 income 5 6 7 0 0 00 0 00 0 0 0 0 0000 1 1 2 2 2 2 3 <20000 20000-30000 30000-40000 >40000

336

Interpretation: From the above chart we can show that Relation between fire ins. company and income. In this diagram x axes shows that rank and Y axes shows that income are customers. Form the above chart we can say that maximum people give 5th rank to company for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give 7th rank to company for buying fire isothere income are more then 20000. There are total 3 people who give 1st rank to company Out of which no anyone people income are <20000, and people income are 20000 to 30000. And 2 people income are 30000 to 40000. And also in this one peoples income more than 40000. There are total 2 peoples who give 4th rank to company the for buying fire insurance out of which ,no any peoples income are less than 2oooo.and 3 peoples are income more than 40000..7peoples are give 5th rank in company factors so company is not important factors in this fire ins.. Here total 24 peoples give important to where buy fire insurance. In this total 2 peoples income are less than 20000rs and maximum 1o peoples income are 20000 to 30000.and less than 10 peoples income are more than 40000rs

337

6. Income & speed claim settlement Income Rank 1 2 3 4 5 6 7 total <20000 1 1 0 0 0 0 0 2 2000030000 1 1 1 5 2 0 0 10 3000040000 0 0 1 0 1 0 0 2 >40000 0 3 0 3 2 0 0 10 total 2 5 4 7 5 0 0 24

income&speed claim sattlement


6 5 5 4 s.c.s 3 3 2 2 11 1 00 0 1 2 3 4 income 5 6 7 0 0 0 0 0 0000 0000 11 11 1 2 2 3 <20000 20000-30000 30000-40000 >40000

338

Interpretation: From the above chart we can show that Relation between speed claim settlement and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. In buying health INS. There are so many factors important. But Form the above chart we can say that maximum people give 4th rank to speed claim settlement for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to speed clime settlement for buying fire ins. There are total 2 people who give 1st rank to speed claim settlement. Out of which There are 5 people who give 2nd rank to the s.c. settlement There are total 7 peoples who give 4th rank to s.c . Settlement the for buying fire insurance out of which, 2 peoples income are less than 2oooo. There are total 5 peoples give 5th rank to the company for buying fire ins. Out of which noany peoples income are less than 20000.. Here total 24 peoples give important to where buy fire insurance. In this total 2 peoples income are less than 20000rs and maximum 1o peoples income are 20000 to 30000.and less than 10 peoples income are more than 40000rs

339

7. Income & others: Income Rank 1 2 3 4 5 6 7 total <20000 0 0 0 0 0 2 0 2 2000030000 1 1 0 0 1 7 0 10 3000040000 0 0 0 0 0 2 0 2 >40000 0 0 1 0 0 9 0 10 total 1 1 1 0 1 20 0 24

income&others
10 9 8 7 others 6 5 4 3 2 1 0 1 2 3 4 income 5 6 7 0 1 00 0 1 00 000 1 0000 0 1 00 0000 2 2 <20000 20000-30000 30000-40000 >40000 7 9

340

Interpretation: From the above chart we can show that Relation between other factors and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. In buying fire ins. There are so many factors important. But Form the above chart we can say that maximum people give 7th rank to others factors for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give 1st rank to others factors for buying fire ins. There are total 1 people who give 1st rank to . Out of which no anyone people income are <20000, 1 people income are 20000 to 30000. And noany one people income are 30000 to 40000. And peoples income more than 40000. There are total 20 peoples who give 6th rank to others factors the for buying fire insurance out of which, 2 peoples income are less than 2oooo.1 peoples incomes are 20000 to 30000. There are total no anyone peoples give 7th rank to the for buying fire ins. Out of which 2 peoples income are 20000 to 30000. . Here total 24 peoples give important to where buy fire insurance. In this total 2 peoples income are less than 20000rs and maximum 1o peoples income are 20000 to 30000.and less than 10 peoples income are more than 40000rs

341

C. Theft Insurances: 1. Income & premium: Income Rank 1 2 3 4 5 6 7 total <20000 1 2 1 1 1 1 0 7 2000030000 1 2 0 0 0 3 0 6 3000040000 0 0 0 0 0 0 0 0 >40000 1 2 2 2 2 0 0 9 total 3 6 3 3 3 4 0 22

incme&premium
3.5 3 3 2.5 premium 22 2 1.5 11 1 0.5 0 0 1 2 3 4 income 5 6 7 0 0 0 00 0 1 1 1 1 1 2 2 2 2 <20000 20000-30000 30000-40000 >40000

342

Interpretation: From the above chart we can show that Relation between Theft ins. Premium and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers.. Form the above chart we can say that maximum people give 2 rd rank to premium for buying Theft ins.out of which more people income are 20000 rs to 30000rs and no anyone people give 7th rank to premium for buying Theft ins. There are total 3 peoples give 5th rank to the premium for buying theft ins. Out of which one peoples income are less than 20000. Here total 22 peoples give important where buy theft insurance. In this total 7 peoples income are less than 20000rs and maximum 6 peoples income are 20000 to 30000.and less than peoples income are more than 40000rs.In this no any peoples income are 30000 to 40000.no more important give theft insurance. In general insurance income theft insurance is week part.

343

2. Income & cash less benefit: Income Rank 1 2 3 4 5 6 7 total <20000 1 1 1 4 0 0 0 7 2000030000 1 3 1 0 1 0 0 6 3000040000 0 0 0 0 0 0 0 0 >40000 1 1 1 4 1 1 0 9 total 3 5 3 8 2 1 0 22

income&cash less benefits


4.5 4 3.5 3 c.l.b 2.5 2 1.5 1 0.5 0 1 2 3 4 income 5 6 7 0 0 00 00 0 11 1 1 1 11 1 1 1 1 <20000 20000-30000 30000-40000 >40000 3 4 4

344

Interpretation: From the above chart we can show that Relation between cash less benefit and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers. Form the above chart we can say that maximum people give 4th rank to cash less benefit for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to cash less benefit for buying health ins. There are total 38 people who give 1st rank to . Out of which 16 people income are <20000, 16 people income are 20000 to 30000. And 2 people income are 30000 to 40000. And also in this peoples income more than 40000. There are 38 people who give 2nd rank . Out of which, 23 peoples income are less than 20000. And 8 peoples income are 20000 to 30000.and 7 peoples income are more then 20000. There are total 58 peoples who give 4th rank to the premium for buying health insurance out of which ,3o peoples income are 20000 to 30000.In this maximum peoples incomes are less than 20000 and 1o1 peoples incomes are 20000 to30000 and 34 peoples income are more then 40000. There are total 46 peoples give 5th rank. for buying health ins. Out of which 14 peoples income are less than 20000.. Here total 272 peoples give important where buy health insurance. In this total 102 peoples income are less than 20000rs and maximum 1o1 peoples income are 20000 to 30000.and less than 34 peoples income are more than 40000rs.

345

3. Income & age coverage: Income Rank 1 2 3 4 5 6 7 total <20000 1 2 1 0 1 1 0 6 2000030000 0 0 1 1 3 1 0 6 3000040000 0 0 0 0 0 0 0 0 >40000 0 1 1 1 2 4 0 9 total 1 3 3 2 6 6 0 21

income&age coverage
4.5 4 3.5 age civerage 3 2.5 2 1.5 1 0.5 0 1 2 3 4 income 5 6 7 0 0 0 0 00 0 1 1 11 1 1 1 1 11 2 2 <20000 20000-30000 30000-40000 >40000 3 4

346

Interpretation: From the above chart we can show that Relation between age coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. Form the above chart we can say that maximum people give 5th rank to age coverage for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to premium for buying theft ins. There are total 1 people who give 1st rank to age coverage. Out of which all people income are <20000, There are 3 people who give 2nd rank to the age coverage out of which, 2 peoples income are less than 20000. There are total 2 peoples who give 4th rank to age coverage the for buying theft insurance out of which ,no any one peoples income are less than 2oooo.1 peoples incomes are 20000 to 30000. There are 6 peoples give 5th rank to the age covera ge for buying theft ins. Out of which no any one peoples income are 20000 to 30000. Here total 258 peoples give important where buy theft insurance. In this total 6 peoples income are less than 20000rs and maximum

347

4. Income & family coverage: Income Rank 1 2 3 4 5 6 7 total <20000 3 2 0 0 2 0 0 7 2000030000 0 1 1 3 1 0 0 6 3000040000 0 0 0 0 0 0 0 00 >40000 3 1 1 0 1 3 0 9 total 6 4 2 3 4 3 0 22

income&family coverage
3.5 3 3 family coverage 2.5 2 2 1.5 1 1 0.5 0 0 1 2 3 4 income 5 6 7 0 0 0 00 00 1 1 1 1 1 2 <20000 20000-30000 30000-40000 >40000 3 3 3

348

Interpretation: From the above chart we can show that Relation between family coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. Form the above chart we can say that maximum people give 1th rank to family coverage for buying theft ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to family coverage for buying theft ins. There are total 6people who give 1st rank to Family coverage. Out of which one people income are <20000, 3 people income are 20000 to 30000. There are 4 people who give 2nd rank to the family coverage out of which, 2 peoples income are less than 20000. Those peoples are not buy theft insurance. And 21 peoples income are 20000 to 30000.and 6 peoples income are more then 20000. In this theft insurances comparison of income and family coverage prove that maximum peoples assure the theft ins . All those income are 20000 to 30000. There are total 4 peoples give 5th rank. for buying theft ins. Out of which maximum peoples income are more than 40000.. Here total 22 peoples give important to where buy theft insurance. In this total 2 peoples income are less than 20000rs and maximum 10 peoples income are 20000 to 30000.and also 10 peoples income are more than 40000rs.

349

5. Income & company: Income Rank 1 2 3 4 5 6 7 total <20000 1 0 3 0 3 0 0 7 2000030000 3 0 0 2 1 0 0 6 3000040000 0 0 0 0 0 0 0 0 >40000 3 3 1 1 1 0 0 9 total 7 3 4 3 5 0 0 22

income&company
3.5 3 3 2.5 company 2 2 1.5 1 1 0.5 00 0 1 2 3 4 income 5 6 7 0 0 00 0 00 0 1 1 1 1 <20000 20000-30000 30000-40000 >40000 3 3 3 3

350

Interpretation: From the above chart we can show that Relation between family coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. Form the above chart we can say that maximum people give 2th rank to family coverage for buying theft ins. out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to family coverage for buying theft ins. There are total 7people who give 1st rank to Family coverage. Out of which one people income are <20000, 3 people income are 20000 to 30000. And no anyone people income are 30000 to 40000. And also in this 3 peoples income more than 40000. There are 3 people who give 2nd rank to the family coverage out of which, no any peoples income are less than 20000. Those peoples are not buy theft insurance. In this fire insurances comparison of income and family coverage prove that maximum peoples assure the theft ins . All those income are 20000 to 30000. There are total 5 peoples give 5th rank. for buying theft ins. Out of which maximum peoples income are more than 40000.. Here total 22 peoples give important to where buy theft insurance. In this total 7 peoples income are less than 20000rs and maximum 6 peoples income are 20000 to 30000.and also 9 peoples income are more than 40000rs.

351

6. Income & speed claim settlement Income Rank 1 2 3 4 5 6 7 total <20000 0 0 0 2 0 5 0 7 2000030000 1 0 3 0 0 2 0 6 3000040000 0 0 0 0 0 0 0 0 >40000 1 1 2 1 2 1 1 9 total 2 1 5 3 2 8 1 22

income&speed claim sattlement


6 5 5 4 s.c.s 3 3 2 2 1 1 0 0 1 2 3 4 income 5 6 7 00 0 0 00 00 1 1 1 1 1 2 2 2 <20000 20000-30000 30000-40000 >40000

352

Interpretation: From the above chart we can show that Relation between speed claim settlement and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. In buying theft INS. There are so many factors important. But Form the above chart we can say that maximum people give 6 th rank to speed claim settlement for buying theft ins. out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to speed clime settlement for buying fire ins. There are total 2 people who give 1st rank to speed claim settlement. There are 1people who give 2nd rank to the s.c. settlement There are total 3 peoples who give 4th rank to s.c . Settlement the for buying theft insurance out of which, 2 peoples income are less than 2oooo. There are total 2 peoples give 5th rank to the company for buying theft ins. Out of which no any peoples income are less than 20000.. Here total 22 peoples give important to where buy theft insurance. In this total 7 peoples income are less than 20000rs and maximum 6 peoples income are 20000 to 30000.and less than 9 peoples income are more than 40000rs

353

7. Income & others: Income Rank 1 2 3 4 5 6 7 total <20000 0 0 0 0 0 0 7 7 2000030000 0 0 0 0 0 0 6 6 3000040000 0 0 0 0 0 0 0 0 >40000 0 1 0 0 0 0 8 9 total 0 1 0 0 0 0 21 22

income&others
9 8 7 6 others 5 4 3 2 1 0 1 2 3 4 income 5 6 7 00 0 00 1 00 0 00 0 00 0 00 0 <20000 20000-30000 30000-40000 >40000 7 6 8

354

Interpretation: From the above chart we can show that Relation between other factors and income. In this diagram x axes shows that rank and Y axes shows that income are customers. In buying theft ins. There are so many factors important. But Form the above chart we can say that maximum people give 7th rank to others factors for buying theft ins.out of which more people income are 20000 rs to 30000rs and minimum people give 1st rank to others factors for buying theft ins. In this theft ins. No any one people income 30000 to 40000 and here no any one people give rank 1st, 3rd, 4th, 6th so in is prove that customer no more important other factors were buying insurance.. . Here total 22 peoples give important to where buy fire insurance. In this total 7 peoples income are less than 20000rs and maximum 6 peoples income are 20000 to 30000.and less than 9 peoples income are more than 40000rs

355

D. Accident Insurances: 1. Income & premium: Income Rank 1 2 3 4 5 6 7 total <20000 8 5 7 5 7 0 1 33 2000030000 15 10 13 8 8 3 1` 58 3000040000 2 10 3 2 1 1 0 19 >40000 4 3 4 4 3 1 0 19 total 29 28 27 19 19 5 2 129

income&premium
16 14 12 1010 premium 10 8 8 6 4 4 2 2 0 1 2 3 income 4 5 6 3 3 2 1 0 1 1 5 4 7 5 4 3 3 8 7 8 <20000 20000-30000 30000-40000 >40000 15 13

356

Interpretation: From the above chart we can show that Relation between accident ins. Premium and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers. Form the above chart we can say that maximum people give 1 st rank to premium for buying accident ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to premium for buying accident ins. There are total 29 people who give 1st rank to premium. Out of which 8 people income is less than 20000, 15 people income are 20000 to 30000. And 2 people income are 30000 to 40000. And also in this peoples income more than 40000. There are 28 people who give 2nd rank to the premium out of which, 5 peoples income are less than 20000. And 10 peoples income are 20000 to 30000.and 3 peoples income are more then 20000. There are total 19 peoples who give 4th rank to the premium for buying accident insurance out of which , 5 peoples income are less than 2oooo.8 peoples incomes are 20000 to 30000. 8 peoples incomes are 30000 to40000 and 3 peoples incomes are more then 40000. There are total 19 peoples give 5th rank to the premium for buying Accident ins. Out of which 7 peoples income are less than 20000. Here total 129 peoples give important where buy accident insurance. In this total 33 peoples income are less than 20000rs and maximum 58 peoples income are 20000 to 30000.and less than 19 pepoles income are more than 40000rs

357

2. Income & cash less benefit: Income Rank 1 2 3 4 5 6 7 total <20000 1 2 7 9 7 4 0 33 2000030000 7 9 7 21 13 0 1 58 3000040000 1 1 6 7 2 1 1 19 >40000 3 5 3 4 2 2 0 19 total 15 17 23 41 24 7 2 129

income &cash less benefits


25 21 20 15 c.l.b 10 5 1 0 1 2 3 4 income 5 6 7 1 9 7 5 3 2 1 77 6 3 9 7 4 22 0 7 4 1 2 0 11 0

13

<20000 20000-30000 30000-40000 >40000

358

Interpretation: From the above chart we can show that Relation between cash less benefit and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers. Form the above chart we can say that maximum people give 4th rank to cash less benefit for buying accident ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to cash less benefit for buying accident ins. There are total 15 people who give 1st rank to. Out of which 1 people income are <20000, 7 people income are 20000 to 30000. And 1 people income are 30000 to 40000. And also in this peoples income more than 40000. There are 17 people who give 2nd rank. Out of which, 2 peoples income are less than 20000. And 9 peoples income are 20000 to 30000.and 5 peoples income are more then 20000. There are total 41 peoples who give 4th rank to the premium for buying accident insurance out of which ,3o peoples income are 20000 to 30000.In this maximum peoples incomes are less than 20000 and 58 peoples incomes are 20000 to30000 and 19 peoples income are more then 40000. There are total 24 peoples give 5th rank. for buying accident ins. Out of which 7 peoples income are less than 20000.. Here total 129 peoples give important where buy accident insurance. In this total 33 peoples income are less than 20000rs and maximum 58 peoples income are 20000 to 30000.and less than 19 peoples income are more than 40000rs.

359

3. Income & age coverage: Income Rank 1 2 3 4 5 6 7 total <20000 5 9 2 5 8 4 0 33 2000030000 12 7 10 8 12 8 1 58 3000040000 2 2 2 3 7 3 0 19 >40000 0 4 5 1 6 3 0 19 total 19 22 19 17 33 18 1 129

income&age coverage
14 12 12 10 10 age coverage 8 6 4 2 2 0 0 1 2 3 4 income 5 6 7 2 2 2 1 0 1 00 5 4 3 9 8 7 5 5 4 33 8 7 6 8 <20000 20000-30000 30000-40000 >40000 12

360

Interpretation: From the above chart we can show that Relation between age coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. Form the above chart we can say that maximum people give 5th rank to age coverage for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th rank to age coverage for buying accident ins. There are total 19 people who give 1st rank to age coverage. Out of which 5 people income are <20000, And only one persons income more than 40000.There are 22 people who give 2nd rank to the age coverage out of which, 9 peoples income are less than 20000. And 7 peoples income are 20000 to 30000.and 4 peoples income are more then 40000. There are total 17 peoples who give 4th rank to age coverage the for buying accident insurance out of which Here all those peoples income aren 20000 to 30000.There are 33 peoples give 5th rank to the age coverage for buying fire ins. Out of which 8 peoples income are 20000 to 30000. Here total 129 peoples give important where buy accident insurance. In thi s total 33 peoples income are less than 20000rs and maximum 58 peoples income are 20000 to 30000.and less than 19 peoples income are more than 40000rs.

361

4. Income & family coverage: Income Rank 1 2 3 4 5 6 7 total <20000 6 6 6 5 5 4 1 33 2000030000 13 11 12 3 8 10 1 38 3000040000 7 2 1 1 3 4 1 19 >40000 5 2 1 4 4 3 0 19 total 31 21 20 13 20 21 3 129

income&family coverage
14 12 family coverage 10 8 8 6 6 4 22 2 0 1 2 3 4 income 5 6 7 11 1 111 0 5 7 6 6 5 4 3 3 5 4 4 4 3 <20000 20000-30000 30000-40000 >40000 13 12 11 10

362

Interpretation: From the above chart we can show that Relation between family coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers. Form the above chart we can say that maximum people give 1th rank to family coverage for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to family coverage for buying accident ins. There are total 31 people who give 1st rank to Family coverage. Out of 6 people income are <20000, 13 people income are 20000 to 30000. And 7 people income are 30000 to 40000. And also in this 5 peoples income more than 40000. There are 21 people who give 2nd rank to the family coverage out of which, 6 peoples income are less than 20000. And 12 peoples income are 20000 to 30000.and 1 peoples income are more then 20000. In this accident insurances comparison of income and family coverage prove that maximum peoples assure the accident ins. All those income are 20000 to 30000. There are total 20 peoples give 5th rank. For buying fire ins. Out of which maximum peoples income are more than 40000. Here total 129 peoples give important to where buy accident insurance. In this total 33 peoples income are less than 20000rs and maximum 19 peoples income are 20000 to 30000.and also 19 peoples income are more than 40000rs.

363

5. Income & company:

Income Rank 1 2 3 4 5 6 7 total

<20000 0 0 0 0 0 0 0 0

2000030000 1 1 0 0 0 0 3 5

3000040000 0 0 0 0 0 0 0 0

>40000 0 0 0 0 0 0 0 0

total 1 1 0 0 0 3 0 5

income&company
3.5 3 3 2.5 company 2 1.5 1 1 0.5 0 0 1 2 3 4 income 5 6 7 0 0 0 1 <20000 20000-30000 30000-40000 >40000

364

Interpretation: From the above chart we can show that Relation between health ins. company and income. In this diagram x axes shows that rank and Y axes shows that income are customers. Form the above chart we can say that maximum people give 6th rank to company for buying accident ins.out of which more people income are 20000 rs to 30000rs and minimum people give 7th rank to company for buying accident ins.there income are more then 20000. There are total 1 people who give 1st rank to company no one people income are <20000, 1 people income are 20000 to 30000. And 0 people income are 30000 to 40000. And also in this 0 peoples income more than 40000. No one peoples incomes are 20000 to 30000. 5 peoples incomes are 30000 to40000 and no one peoples incomes are more than 40000.6 peoples are give 7 th rank in company factors so company is not important factors in this accident ins. All those people. There are total no one peoples give 5th rank to the company for buying accident ins. Out of which no one peoples income are less than 20000. Here total 5 peoples give important to where buy accident insurance. In this total 0 peoples income are less than 20000rs and maximum 5 peoples income are 20000 to 30000.and less than 0 peoples income are more than 40000rs

365

6. Income & speed claim settlement Income Rank 1 2 3 4 5 6 7 total <20000 0 0 0 0 0 0 0 0 2000030000 0 1 0 0 0 0 0 1 3000040000 0 0 0 0 0 0 0 0 >40000 0 0 0 0 0 0 0 0 total 0 1 0 0 0 0 0 1

income &speed claim sattlement


1.2 1 1 0.8 s.c.s 0.6 0.4 0.2 0 0 1 2 3 4 income 5 6 7 0 0 0 0 0 <20000 20000-30000 30000-40000 >40000

366

Interpretation: From the above chart we can show that Relation between speed claim settlement and income. In this diagram x axes shows that rank and Y axes shows that income are customers. In buying accident INS. There are so many factors important. But Form the above chart we can say that maximum people give 4th rank to speed claim settlement for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to speed clime settlement for buying fire ins. There are total no one people who give 1st rank to speed claim settlement. There are 1 people who give 2nd rank to the s.c. settlement There are total no any one peoples who give 4th rank to s.c . Settlement the for buying accident insurance out of which, no any one peoples income are less than 20000 Here total 1 peoples give important to where buy accident insurance. In this total no any one peoples income are less than 20000rs and maximum 1 peoples income are 20000 to 30000.and less than 0 peoples income are more than 40000rs

367

7. Income & others: Income Rank 1 2 3 4 5 6 7 total <20000 0 0 0 0 0 0 0 0 2000030000 0 0 0 0 0 0 1 1 3000040000 0 0 0 0 0 0 0 0 >40000 0 0 0 0 0 0 0 0 total 0 0 0 0 0 0 1 1

income&others
1.2 1 1 0.8 others 0.6 0.4 0.2 0 0 1 2 3 4 income 5 6 7 0 0 0 0 0 <20000 20000-30000 30000-40000 >40000

368

Interpretation: From the above chart we can show that Relation between other factors and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. In buying accident ins. There are so many factors important. But Form the above chart we can say that maximum people give 7th rank to others factors for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give 1st rank to others factors for buying fire ins. Here in this insurance no customer give important other factor where buying acc. Ins. It is prove that above chart There are total no anyone peoples give 7th rank to the for buying fire ins. Out of which 1 peoples income are 20000 to 30000. . Here total 1 peoples give important to where buy fire insurance. In this total no one peoples income are le ss than 20000rs and maximum 1 peoples income are 20000 to 30000.and less than 0 peoples income are more than 40000rs

369

E. Vehicle Insurances: 1. Income & premium: Income Rank 1 2 3 4 5 6 7 Total <20000 10 4 4 7 6 6 2 39 2000030000 11 11 13 11 5 6 0 57 3000040000 15 6 11 9 1 1 0 43 >40000 7 8 5 7 4 0 0 31 total 33 29 33 34 16 13 2 170

income&premium
16 14 12 premium 10 8 8 6 4 4 2 2 0 1 2 3 4 income 5 6 7 1 1 0 000 4 7 6 5 7 7 6 5 4 66 11 10 11 15 13 11 11 9 <20000 20000-30000 30000-40000 >40000

370

Interpretation: From the above chart we can show that Relation between accident ins. Premium and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers.. Form the above chart we can say that maximum people give 4th rank to premium for buying Vehicle ins.out of which more than people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to premium for buying Vehicle ins. There are total 33 people who give 1st rank to premium. Out of which 10 people income is less than 20000, 11 people income are 20000 to 30000. And 15 people income are 30000 to 40000. And also in this peoples income more than 40000. There are 29 people who give 2nd rank to the premium out of which, 4 peoples income are less than 20000. And 11 peoples income are 20000 to 30000.and 8 peoples income are more then 20000. There are total 34 peoples who give 4th rank to the premium for buying vehicle insurance out of which , 7 peoples income are less than 2oooo. 11 peoples incomes are 20000 to 30000. 9 peoples incomes are 30000 to40000 and 7 peoples incomes are more then 40000. There are total 16 peoples give 5th rank to the premium for buying vehicle ins. Out of which 6 peoples income are less than 20000. Here total 170 peoples give important where buy vehicle insurance. In this total 39 peoples income are less than 20000rs and maximum 57 peoples income are 20000 to 30000.and less than 31 peoples income are more than 40000rs.

371

2. Income & cash less benefit: Income Rank 1 2 3 4 5 6 7 total <20000 0 0 0 1` 0 0 0 1 2000030000 0 1 0 0 0 0 0 1 3000040000 0 0 0 0 0 0 0 0 >40000 0 0 1 0 0 0 0 1 total 0 1 1 1 0 0 0 3

income & cash less benefit


1.2 1 1 0.8 c.l.b 0.6 0.4 0.2 0000 0 1 2 3 4 income 5 6 7 0000 0 00 00 0000 0000 0000 <20000 20000-30000 30000-40000 >40000 1 1

372

Interpretation: From the above chart we can show that Relation between cash less benefit and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers. Form the above chart we can say that maximum people give 4th rank to cash less benefit for buying vehicle ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to cash less benefit for buying vehicle ins. There are no one people give 1st rank There are 1 people who give 2nd rank . Out of which, 0 peoples income are less than 20000. And 1 peoples income are 20000 to 30000.and 0 peoples income are more then 20000. There are total no one peoples who give 4th rank to the premium for buying vehicle insurance out of which ,no one peoples income are 20000 to 30000. In this no any one people 4th, 5th, 6th. And 7th rank Here total 3 peoples give important where buy vehicle insurance. In this total 1 peoples inco me is less than 20000rs and maximum 1 peoples income are 20000 to 30000.and less than 1 peoples income are more than 40000rs.

373

3. Income & age coverage: Income Rank 1 2 3 4 5 6 7 total <20000 0 0 1 0 0 0 0 1 2000030000 0 1 0 0 0 0 0 1 3000040000 0 0 0 0 0 0 0 0 >40000 0 0 1 0 0 0 0 1 total 0 1 2 0 0 0 0 3

income & age coverage


1.2 1 1 0.8 age cov. 0.6 0.4 0.2 00 0 1 2 3 4 income 5 6 7 0 0 0 0 00 0 00 0 00 0 00 0 <20000 20000-30000 30000-40000 >40000 1 1

374

Interpretation: From the above chart we can show that Relation between age coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. Form the above chart we can say that maximum people give 5th rank to age coverage for buying vehicle ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th rank to age coverage for buying vehicle ins. There are total 0 people who give 1st rank to age coverage. Out of which no any people income are <20000, And only one persons income more than 40000.There are 5 people who give 2nd rank to the age coverage out of which, no any peoples income are less than 20000. And 2 peoples income are 20000 to 30000.and 3 peoples income are more then 20000. In this no any one people give 1st, 4th. 5th, 6th and 7th rank to vehicle ins. Here total 3 peoples give important where buy vehicle insurance. In this total1 peoples income are less than 20000rs and maximum 1 peoples income are 20000 to 30000.and less than 1 peoples income are more than 40000rs.

375

4. Income & family coverage: Income Rank 1 2 3 4 5 6 7 total <20000 0 1 0 0 0 0 0 1 2000030000 1 0 0 0 0 0 0 1 3000040000 0 0 0 0 0 0 0 0 >40000 1 0 0 0 0 0 0 1 total 2 1 0 0 0 0 0 3

income & family coverage


1.2 1 1 family coverage 0.8 0.6 0.4 0.2 0 0 1 2 3 4 income 5 6 7 0 0 00 0 00 0 00 0 00 0 00 0 <20000 20000-30000 30000-40000 >40000 1 1

376

Interpretation: From the above chart we can show that Relation between family coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. Form the above chart we can say that maximum people give 1th rank to family coverage for buying vehicle ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to family coverage for buying vehicle ins. There are total 2 people who give 1st rank to Family coverage. Out of which one people income are <20000, 1 people income are 20000 to 30000. And no anyone people income are 30000 to 40000. And also in this 1 peoples income more than 40000. There are 1 people who give 2nd rank to the family coverage out of which, no any peoples income are less than 20000. Those peoples are not buy vehicle insurance. And 1 peoples income are 20000 to 30000.and 1 peoples income are more then 20000. Here total 3 peoples give important to where buy vehicle insurance. In this total 1 peoples income are less than 20000rs and maximum 1peoples income are 20000 to 30000.and also 1 peoples income are more than 40000rs.

377

5. Income & company: Income Rank 1 2 3 4 5 6 7 total <20000 1 0 0 0 00 0 0 1 2000030000 0 0 0 1 0 0 0 1 3000040000 0 0 0 0 0 0 0 0 >40000 0 1 0 0 0 0 0 1 total 1 1 0 1 0 0 0 3

income & company


1.2 1 1 0.8 company 0.6 0.4 0.2 0 0 0 1 2 3 4 income 5 6 7 00 00 0 0 0 00 0 00 0 00 0 <20000 20000-30000 30000-40000 >40000 1 1

378

Interpretation: From the above chart we can show that Relation between health ins. company and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. Form the above chart we can say that maximum people give 6th rank to company for buying vehicle ins.out of which more people income are 20000 rs to 30000rs and minimum people give 7th rank to company for buying health ins.there income are more then 20000. There are total 1 peoples who give 4th rank to company the for buying vehicle insurance out of which ,1 peoples income are less than 2oooo.and 1peoples are income more than 40000. Here total 3 peoples give important to where buy vehicle insurance. In this total 1 peoples income are less than 20000rs and maximum1 peoples income are 20000 to 30000.and less than 1 peoples income are more than 40000rs

379

6. Income & speed claim settlement Income Rank 1 2 3 4 5 6 7 total <20000 1 1 1 0 0 1 0 4 2000030000 2 0 1 0 0 0 0 3 3000040000 0 0 0 0 0 0 0 0 >40000 1 1 1 0 0 1 1 5 total 4 2 3 0 0 2 1 12

income & speed claim sett.


2.5 2 2 1.5 s.c.s 1 1 0.5 0 0 1 2 3 4 income 5 6 7 00 0 00 0 0 00 1 1 1 11 1 1 1 1

<20000 20000-30000 30000-40000 >40000

380

Interpretation: From the above chart we can show that Relation between speed claim settlement and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. In buying vehicle INS. There are so many factors important. But Form the above chart we can say that maximum people give 4th rank to speed claim settlement for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to speed clime settlement for buying vehicle ins. There are total 4 people who give 1st rank to speed claim settlement. Out of which There are 2 people who give 2nd rank to the s.c. settlement There are total 3 peoples who give 4th rank to s.c . Settlement the for buying vehicle insurance out of which, 4 peoples income are less than 2oooo. There are total no any one peoples give 5th rank to the company for buying fire ins. Out of which no any peoples income are less than 20000.. Here total 12 peoples give important to where buy vehicle insurance. In this total 4 peoples income are less than 20000rs and maximum3 peoples income are 20000 to 30000.and less than 5 peoples income are more than 40000rs

381

7. Income & others: Income Rank 1 2 3 4 5 6 7 total <20000 0 0 0 0 0 1 9 10 2000030000 0 0 0 0 0 1 4 5 3000040000 0 0 0 0 0 0 0 0 >40000 0 0 0 0 0 0 4 4 total 0 0 0 0 0 2 17 19

income & others


10 9 8 7 others 6 5 4 3 2 1 0 1 2 3 4 income 5 6 7 00 0 00 0 00 0 00 0 00 0 11 0 4 4 <20000 20000-30000 30000-40000 >40000 9

382

Interpretation: From the above chart we can show that Relation between other factors and income. In this diagram x axes shows that rank and Y axes shows that income are customers.. In buying vehicle ins. There are so many factors important. But Form the above chart we can say that maximum people give 7th rank to others factors for buying vehicle ins.out of which more people income are 20000 rs to 30000rs and minimum people give 1st rank to others factors for buying fire ins. In this all general ins. Customer no more important give other factor its prove our chart. Here no one people give 1st, 2nd, 3rd, 4th, and 5th rank where buy vehicle ins. There are total 2 peoples who give 6th rank to others factors the for buying vehicle insurance out of which,1 peoples income are less than 2oooo.1 peoples incomes are 20000 to 30000. There are total 17 peoples give 7th rank to the for buying vehicle ins. Out of which 1 peoples income ar e 20000 to 30000. . Here total 19 peoples give important to where buy vehicle insurance. In this total 10 peoples income are less than 20000rs and maximum 5 peoples income are 20000 to 30000.and less than 4 peoples income are more than 40000rs

383

6.2.3. Occupation & types of insurance: occupation types of ins. Health .ins Fire .ins Theft .ins Accident .ins Vehicle .ins Total Busines s 93 22 16 57 71 259 Profession 19 3 1 8 12 43 Service 131 0 5 64 80 280 House wife 14 0 0 2 2 18 Total 257 25 22 131 165 600

occupation & types of insurance


100 90 80 70 occupation 60 50 40 30 20 10 0 Health ins. Fire ins. Theft ins. Accident vehicle ins ins. types of insurance 34 22 19 14 13 00 16 1 5 8 0 2 12 2 64 57 Business profession Services House wife 71 93 80

384

Interpretation In the above chart we can shows that relation between occupation & types of insurance. Here total 600 customers. Out of which 259 peoples is own business men. 43 people is profession. 280 people are in the service sector. And in house wife sector 18 people included whose buy insurance. Here in 600 peoples out of which maximum people is in the service sector. In the health INS total 257 peoples out of which maximum pepoles in the service sector. And minimum peoples in the house wife sector. In the fire ins total 25 peoples out of which maximum peoples in the business. And minimum peoples in the profession sector. In this fire ins. No any one peoples comes service and house wife sector. In the Accident ins total 131 peoples out of which maximum pepoles in the service sector. And minimum peoples in the house wife sector. In the Vehicle insurance total 165 people out of which maximum pepoles in the service sector. And minimum peoples in the house wife sector.

385

6.2.4.: Income & types of insurance: income types of ins. Health ins. Fire ins. Theft ins. Accident ins. Vehicle ins. Total <20000 88 2 7 33 43 173 2000030000 100 10 6 59 63 238 3000040000 35 2 0 19 28 84 >40000 34 11 9 20 31 105 Total 257 25 22 31 165 600

income & types of insurance


120 100 100 80 income 60 40 20 2 0 health insurance fire ins. theft ins. accident ins. vehicle ins. 35 34 10 2 11 7 6 9 0 33 19 20 59 43 28 31 63 <20000 20000-30000 30000-40000 >40000 88

types of insurance

386

Interpretation: From the above chart we can show that Relation between Types of insurance. and income. In this diagram x axes shows that types of insurance and Y axes shows that income of customers.. Here total 600 customers. Out of which 173 peoples income are less than 20000. 238 peoples income are 20000 to 30000.and 84 peoples income are 30000 to 40000. Here in 600 people out of whom maximum people are income are 20000 to 30000. In the health INS total 257 peoples out of which maximum peoples income are 20000 to 30000.. And minimum peoples incomes are more than 40000. In the fire INS total 25 people out of which maximum peoples income are more than 40000. And minimum peoples incomes are 20000 to 30000. In this fire INS. No anyone peoples incomes are 30000 to 40000. In the Accident ins total 31 peoples out of which maximum peoples income are 20000 to 30000. And minimum peoples income rae 30000 to 40000. In the Vehicle insurance total 165 people out of which maximum peoples income are 20000 to 30000 And minimum peoples income are 30000 to 40000.

387

6.2.5.: occupation & insurance company: 1. Occupation & health insurance companies: Occupation Health ins. Com. National ins.co. New ind.ins.co. Oriental United india Icici lombard Bajaj Allianz TATA AIG Others Total Business Profession Service House wife 6 3 1 1 2 1 0 0 14 Total

7 17 22 5 7 6 1 23 88

4 2 2 1 6 1 0 3 19

19 13 12 11 20 13 2 42 132

36 35 37 18 35 21 3 68 253

occupation & health ins. company


45 40 35 occupation 30 25 20 15 10 5 0 7 4 6 19 22 17 13 2 3 12 2 1 5 1 1 11 76 2 6 1 1 1020 20 13 3 23 bussiness profession service 0 house wife 42

health ins. company

388

INTERPRETATION From the above chart we can show that Relation between occupation . and insurance companies In this diagram x axes shows that insurance companies and Y axes shows that occupation of customers.. In this total 253 peoples buy health insurance. Out of which maximum pepoles is in the service sector. And minimum peoples is in house wife sector. Maximum peoples; buying health ins of oriental company ltd. 1. In national INS company: In this total 36 peoples buy ins. Out of which maximum peoples is in service sector. 2. New India ins. Company: In this total 35 peoples buy ins. Out of which also maximum peoples comes service sector. 3. Oriental ins company: : In this total 37 peoples buy ins. Out of which maximum peoples is in business sector 4 united ins. Company: : In this total 18 peoples buy ins. Out of which maximum peoples is in service sector 5 ICICI Lombard com.: : In this total 35 peoples buy ins. Out of which maximum peoples is in service sector 6 Bajaj Allianz: : In this total 21 peoples buy ins. Out of which maximum peoples is in service sector 7Tata AIG: : In this total 36peoples buy ins. Out of which maximum peoples is in service sector 8 other: : In this total 68 peoples buy ins. Out of which maximum peoples is in service sector

389

2. Occupation & companies of fire insurance: occupation fire ins. com National ins.co. New ind.ins.co. Oriental United India Icici Lombard Bajaj Allianz TATA AIG Others Total 3 2 4 3 3 0 2 4 21 2 0 0 0 1 0 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5 2 4 3 4 0 2 4 24 Business Profession Service House wife Total

occupation & fire insurance company


4.5 4 3.5 occupation 3 2.5 2 1.5 1 0.5 0 N.i n.i.a oriental united icici lom. bajaj ali. tata aig others fire ins. company 0 0 0 00 0 0 1 2 2 2 bussiness profession service house wife 3 3 3 4 4

390

INTERPRETATION From the above chart we can show that Relation between occupation . and insurance companies In this diagram x axes shows that insurance companies and Y axes shows that occupation of customers.. In this total 24 peoples buy fire insurance. Out of which maximum peoples is in the service sector. And minimum peoples is in house wife sector. Maximum peoples; buying fire ins of oriental company ltd. 1. In national INS company: In this total 5 peoples buy ins. Out of which maximum peoples is in business.. 2. New India ins. Company: In this total 2 peoples buy ins. Out of which also maximum peoples comes business. 3. Oriental ins company: In this total 4 peoples buy ins. Out of which maximum peoples is in business. 4 united ins. Company: In this total 3 peoples buy ins. Out of which maximum peoples is in business. 5 ICICI Lombard com.: In this total 4 peoples buy ins. Out of which maximum peoples is in business. 6 Bajaj Allianz: : In this total no any peoples buy ins. Of this company. 7Tata AIG: : In this total 2 peoples buy ins. Out of which maximum peoples is in business. 8 other: : In this total 4 peoples buy ins. Out of which maximum peoples is in business. Here no any customers of service sector and house wife sector bcz they not requires safety of fire. Always upper business organization buying fire insurances. So fire ins. Company gaining in the business unit.

391

3. Occupation & companies of theft insurance:

occupation Theft ins com. National ins.co. New ind.ins.co. Oriental United india Icici lombard Bajaj Allianz TATA AIG Others Total

Business

Profession Service

House wife 0 0 0 0 0 0 0 0 0

Total

1 1 5 2 2 1 1 0 13

1 0 0 0 0 0 0 0 1

1 1 0 0 1 0 0 1 4

3 2 5 2 3 1 1 1 18

occupation & theft ins. company


6 5 5 occupation 4 3 2 2 111 1 0 0 00 00 0 00 00 00 1 1 1 1 1 1 2 bussiness profession service house wife

theft ins company

392

INTERPRETATION From the above chart we can show that Relation between occupation. And insurance companies In this diagram x axes shows that insurance companies and Y axes shows that occupation of customers.. In this total 18 peoples buy Theft insurance. Out of which maximum peoples is in the service sector. And a minimum person is in house wife sector. Maximum peoples buying theft ins of oriental company ltd. 1. In national INS company: In this total 3 peoples buy ins. Out of which same peoples comes all sector. 2. New India ins. Company: In this total 2 peoples buy ins. Out of which also maximum people comes business sector. 3. Oriental ins company: In this total 5 peoples buy ins. Out of which maximum peoples is in business sector 4 united ins. Company: In this total 2 peoples buy ins. Out of which maximum peoples is in business sector 5 ICICI Lombard com.: In this total 3 peoples buy ins. Out of which maximum peoples is in business sector 6 Bajaj Allianz: In this total 1 peoples buy ins. Out of which maximum people is in Business sector 7Tata AIG: In this total 1 peoples buy ins. Out of which maximum people is in business sector 8 other: In this total 1 peoples buy ins. Out of which maximum people is comes business sector

393

4. Occupation & companies of accident insurance: Occupation Accident ins com. National ins.co. New ind.ins.co. Oriental United india Icici lombard Bajaj Allianz TATA AIG Others Total Business Profession Service House wife 0 0 1 0 0 1 0 0 2 Total

8 9 14 3 5 7 2 8 56

4 0 0 1 2 1 0 0 8

11 8 8 12 11 6 2 5 63

23 17 23 16 18 15 4 13 129

occupation & accident ins. comany


16 14 12 occupation 10 8 6 4 2 0 0 0 4 5 3 1 2 1 8 11 9 8 8 14 12 11 7 8 6 2 2 0 0 business 5 profession service house wife

accident company

394

INTERPRETATION From the above chart we can show that Relation between occupation. And insurance companies In this diagram x axes shows that insurance companies and Y axes shows that occupation of customers.. In this total 129 peoples Accident insurance. Out of which maximum peoples is in the service sector. And minimum people are in house wife sector. Maximum peoples; buying accident ins of oriental company ltd. 1. In national INS company: In this total 23 peoples buy ins. Out of which maximum peoples is in service sector. 2. New India ins. Company: In this total 17 peoples buy ins. Out of which also maximum peoples comes Business sector. 3. Oriental ins company: In this total 23 peoples buy ins. Out of which maximum peoples is in business sector 4 united ins. Company: In this total 16 peoples buy ins. Out of which maximum peoples is in service sector 5 ICICI Lombard com.: In this total 18 peoples buy ins. Out of which maximum peoples is in service sector 6 Bajaj Allianz: In this total 15 peoples buy ins. Out of which maximum peoples is in business sector 7Tata AIG: In this total 4 peoples buy ins. Out of which maximum peoples is in service sector 8 other: In this total 13 peoples buy ins. Out of which maximum peoples is in business sector.

395

5. Occupation & companies of vehicle insurance:

Occupation Vehicle ins. Com. National ins.co. New ind.ins.co. Oriental United india Icici lombard Bajaj Allianz TATA AIG Others Total

Business

Profession Service

House wife 0 0 0 0 1 0 0 1 2

Total

5 12 9 7 10 12 5 12 72

2 2 0 1 1 4 2 0 12

11 8 8 8 18 12 4 10 79

18 22 17 16 30 28 11 23 165

occupation & vehicle ins. company


20 18 16 14 12 10 8 6 4 2 0 18

occupation

11

12 8 9 10 8 7 8

12 12

12 10 business 5 2 profession service 0 0 1 house wife

5 2 0 2 0 0 0 1 0 1 1

4 0

vehicle ins. company

396

INTERPRETATION From the above chart we can show that Relation between occupation . and insurance companies In this diagram x axes shows that insurance companies and Y axes shows that occupation of customers.. In this total 165 peoples buy Vehicle insurance. Out of which maximum peoples is in the service sector. And minimum peoples is in house wife sector. Maximum peoples; buying Vehicle ins of oriental company ltd. 1. In national INS company: In this total 18 peoples buy ins. Out of which maximum people is in service sector. 2. New India ins. Company: In this total 22 peoples buy ins. Out of which also maximum peoples comes Business sector. 3. Oriental ins company: In this total 17 peoples buy ins. Out of which maximum peoples is in business sector 4 united ins. Company: In this total 16 peoples buy ins. Out of which maximum peoples is in service sector 5 ICICI Lombard com.: In this total 30 peoples buy ins. Out of which maximum peoples is in service sector 6 Bajaj Allianz: In this total 28 peoples buy ins. Out of which maximum peoples is in service sector 7Tata AIG: In this total 11 peoples buy ins. Out of which maximum peoples is in service sector. 8 other: In this total 23 peoples buy ins. Out of which maximum peoples is in Business sector

397

6.3. CHI-

ANALYSIS

6.3.1. Income and payment of INS premium: 1. Health INS: <20000 <2000 2001-5000 5001-8000 >8000 total 55(28.44) 26(33.51) 6(15.57) 0(9.48) 87 2000030000 23(33.01) 54(38.91) 16(18.08) 8(11) 101 3000040000 3(11.44) 15(13.48) 13(6.26) 4(3.81) 35 >40000 3(11.11) 4(13.1) 11(6.09) 16(3.70) 34 Total 84 99 46 28 257

Ho: payment of premium is independent from income H1: payment of premium is dependent on income Expected frequency of cell (1,1)= =28.44

=24.80+3.04++40.89 =122.55 D.f =(r-1)(c-1) =(4-1)(4-1) =9 On 9 d.f and at 5% level of significance table value of cal > tab =16.92

Ho: may be rejected Payment of premium is dependent on income.

398

2. Fire ins: <20000 <2000 2001-5000 5001-8000 >8000 total 5(1.2) 1(2.64) 0(1.2) 0(0.96) 6 2000030000 0(1.4) 5(3.08) 2(1.4) 0(1.12) 7 3000040000 0(0.4) 1(0.88) 1(0.4) 0(0.32) 2 >40000 0(2) 4(4.4) 2(2) 4(1.6) 10 Total 5 11 5 4 25

Ho: payment of premium is independent from income H1: payment of premium is dependent on income Expected frequency of cell (1,1)= =1.2

=12.03+1.4+..+3.6 =26.83 d.f= (r-1)(c-1) =(4-1)(4-1) =9 on 9 d.f and at 5% level of significance table value of cal > tab =16.92

Ho may be rejected Payment of premium is dependent on income.

399

3.Theft ins: <20000 <2000 2001-5000 5001-8000 >8000 Total 3(1.27) 4(2.23) 0(2.55) 9(0.95) 7 2000030000 0(1.09) 6(1.91) 0(2.18) 0(0.82) 6 3000040000 0(0) 0(0) 0(0) 0(0) 0(0) >40000 1(1.64) 3(2.86) 2(3.27) 3(1.23) 9 Total 4 7 8 3 22

Ho: payment of premium is independent from income H1: payment of premium is dependent on income Expected frequency of cell (1,1)= = 1.27

=2.36+1.09++2.55 =90.67 d.f= (r-1)(c-1) =(4-1)(4-1) =9 on 9 d.f and at 5% level of significance table value of cal > tab =16.92

Ho may be rejected Payment of premium is dependent on income.

400

4. Accident ins: <20000 <2000 2001-5000 5001-8000 >8000 total 14(11.26) 16(15.60) 3(3.58) 0(2.56) 33 2000030000 21(19.78) 31(27.43) 4(6.29) 2(4.50) 58 3000040000 4(6.48) 9(8.98) 4(2.06) 2(1.47) 19 >40000 5(6.48) 5(8.98) 3(2.06) 6(1.47) 19 Total 44 61 14 10 129

Ho: payment of premium is independent from income H1: payment of premium is dependent on income Expected frequency of cell (1,1)= = 11.26

=0.67+0.08+.+13.96 =26.15 d.f= (r-1)(c-1) =(4-1)(4-1) =9 on 9 d.f and at 5% level of significance table value of cal > tab =16.92

Ho may be rejected Payment of premium is dependent on income.

401

5. Vehicle ins.: <20000 <2000 2001-5000 5001-8000 >8000 total 31(19.46) 9(12.55) 2(6.91) 0(3.07) 42 2000030000 29(29.66) 22(19.12) 9(10.54) 4(4.68) 64 3000040000 5(12.51) 11(8.07) 11(4.45) 0(1.98) 27 >40000 11(14.37) 7(9.26) 5(5.10) 8(2.27) 31 Total 76 49 27 12 164

Ho: payment of premium is independent from income H1: payment of premium is dependent on income Expected frequency of cell (1,1)= = 19.46

=6.84+0.01+....+14.46 =47.79 d.f= (r-1)(c-1) =(4-1)(4-1) =9 on 9 d.f and at 5% level of significance table value of cal > tab =16.92

Ho may be rejected Payment of premium is dependent on income.

402

6.3.2.: Occupation & types of insurance: Business Health .ins Fire .ins Theft .ins Accident .ins Vehicle .ins Total 93(110 .94) 22(10.79) 16(9.50) 57(56.54) 71(71.23) 259 Profession 19(18.42) 3(1.79) 1(1.58) 8(9.39) 12(11.83) 43 Service 131(119.93) 0(11.66) 5(10.27 ) 64(61.13) 80(77) 280 House wife Total 14(7.71) 0(0.75) 0(0.66) 2(3.93) 2(4.95) 18 257 25 22 131 165 600

Ho: there is no significant difference between occupation and types of insurance taken by people. H1: there is significant difference between occupation and types of insurance taken by people. Expected frequency of cell (1,1)= = 110.94

=2.90+0.02+.+1.76 =51.18 on 12 d.f and at 5% level of significance table value of cal > tab =21.03

Ho may be rejected there is significant difference between occupation and types of insurance taken by people

403

6.3.3.: Income & types of insurance: <20000 Health ins. Fire ins. Theft ins. Accident ins. Vehicle ins. Total 88(74.10) 2(7.21) 7(6.34) 33(37.77) 43(47.8) 173 2000030000 100(101.94) 10(9.92) 6(8.73) 59(51.96) 63(65.45) 238 3000040000 35(35.98) 2(3.5) 0(3.08) 19(18.34) 28(23.1) 84 >40000 34(44.98) 11(4.38) 9(3.85) 20(22.93) 31(28.88) 105 Total 257 25 22 31 165 600

Ho: there is no significant difference between income and types of insurance H1: there is significant difference between income and types of insurance Expected frequency of cell (1,1)= = 74.10

=2.61+0.04+.+0.16 =34.31 on 12 d.f and at 5% level of significance table value of cal > tab =21.03

Ho may be rejected there is significant difference between income and types of insurance taken by people

404

6.3.4.: occupation & insurance companies: 1. Occupation & health insurance companies: Business National ins.co. New ind.ins.co. Oriental United india Icici lombard Bajaj Allianz TATA AIG Others Total 7(12.52) 17(12.17) 22(12.87) 5(6.26) 7(12.17) 6(7.30) 1(1.03) 23(23.65) 88 Profession 4(2.70) 2(2.63) 2(2.78) 1(1.35) 6(2.63) 1(1.58) 0(0.23) 3(5.11) 19 Service 19(18.78) 13(18.26) 12(19.30) 11(9.39) 20(18.26) 13(10.96) 2(1.57) 42(35.48) 132 House wife 6(1.99) 3(1.94) 1(2.05) 1(1) 2(1.94) 1(1.16) 0(0.17) 0(3.76) 14 Total 36 35 37 18 35 21 3 68 253

Ho :there is no significant different between occupation and selection of health insurance company. H1 : there is significant different between occupation and selection of health insurance company. Expected frequency of cell (1,1)= = 12.17

=2.43+0.63+.+3.76 =39.89 on 21 d.f and at 5% level of significance table value of cal > tab =32.67

Ho may be rejected there is significant different between occupation and selection of health insurance company.

405

2. Occupation & companies of fire insurance: Business National ins.co. New ind.ins.co. Oriental United India Icici Lombard Bajaj Allianz TATA AIG Others Total 3(4.38) 2(1.75) 4(3.5) 3(2.63) 3(3.5) 0(0) 2(1.75) 4(4) 21 Profession 2(0.63) 0(0.25) 0(0.5) 0(0.38) 1(0.5) 0(0) 0(0.25) 0(0.5) 3 Service 0(0) 0(0) 0(0) 0(0) 0(0) 0(0) 0(0) 0(0) 0 House wife 0(0) 0(0) 0(0) 0(0) 0(0) 0(0) 0(0) 0(0) 0 Total 5 2 4 3 4 0 2 4 24

Ho :there is no significant different between occupation and selection of fire insurance company. H1 : there is significant different between occupation and selection of fire insurance company. Expected frequency of cell (1,1)= = 4.38

=0.43+2.98+.+0 =6.06 on 21 d.f and at 5% level of significance table value of cal < tab =32.67

Ho may be accepted there is no significant different between occupation and selection of fire insurance company.

406

3. Occupation & companies of theft insurance: Business National ins.co. New ind.ins.co. Oriental United india Icici lombard Bajaj Allianz TATA AIG Others Total 1(2.17) 1(1.44) 5(3.61) 2(1.44) 2(2.17) 1(0.72) 1(0.72) 0(0.72) 13 Profession 1(0.17) 0(0.11) 0(0.28) 0(0.11) 0(0.17) 0(0.06) 0(0.06) 0(0.06) 1 Service 1(0.67) 1(0.44) 0(1.11) 0(0.44) 1(0.67) 0(0.22) 0(0.22) 1(0.22) 4 House wife 0(0) 0(0) 0(0) 0(0) 0(0) 0(0) 0(0) 0(0) 0 Total 3 2 5 2 3 1 1 1 18

Ho :there is no significant different between occupation and selection of theft insurance company. H1 : there is significant different between occupation and selection of theft insurance company. Expected frequency of cell (1,1)= = 2.17

=0.63+4.05+.+0 =13.16 on 21 d.f and at 5% level of significance table value of cal < tab =32.67

Ho may be accepted there is no significant different between occupation and selection of theft insurance company.

407

4. Occupation & companies of accident insurance: Business National ins.co. New ind.ins.co. Oriental United india Icici lombard Bajaj Allianz TATA AIG Others Total 8(9.98) 9(7.38) 14(9.98) 3(6.93) 5(7.81) 7(6.51) 2(1.74) 8(5.64) 56 Profession 4(1.43) 0(0.32) 0(1.43) 1(0.99) 2(1.12) 1(0.93) 0(0.25) 0(0.80) 8 Service 11(11.23) 8(8.30) 8(11.23) 12(7.81) 11(8.79) 6(7.32) 2(1.93) 5(6.35) 63 House wife 0(0.36) 0(0.26) 1(0.36) 0(0.25) 0(0.28) 1(0.23) 0(0.06) 0(0.20) 2 Total 23 17 23 16 18 15 4 13 129

Ho :there is no significant different between occupation and selection of accident insurance company. H1 : there is significant different between occupation and selection of accident insurance company. Expected frequency of cell (1,1)= = 9.98

=0.39+4.61+.+0.20 =24.12 on 21 d.f and at 5% level of significance table value of cal < tab =32.67

Ho may be accepted there is no significant different between occupation and selection of the accident insurance company.

408

5. Occupation & companies of vehicle insurance: Business National ins.co. New ind.ins.co. Oriental United india Icici lombard Bajaj Allianz TATA AIG Others Total 5(7.85) 12(9.6) 9(7.42) 7(6.98) 10(13.09) 12(12.21) 5(4.8) 12(10.04) 72 Profession 2(1.31) 2(1.6) 0(1.24) 1(1.16) 1(2.18) 4(2.04) 2(0.8) 0(1.67) 12 Service 11(8.62) 8(10.53) 8(8.14) 8(7.66) 18(14.36) 12(13.41) 4(5.27) 10(11.01) 79 House wife 0(0.22) 0(0.27) 0(0.21) 0(0.19) 1(0.36) 0(0.34) 0(0.13) 1(0.28) 2 Total 18 22 17 16 30 28 11 23 165

Ho :there is no significant different between occupation and selection of vehicle insurance company. H1 : there is significant different between occupation and selection of vehicle insurance company. Expected frequency of cell (1,1)= = 7.85

=1.03+0.36+.+1.85 =18.08 on 21 d.f and at 5% level of significance table value of cal < tab =32.67

Ho may be accepted there is no significant different between occupation and selection of the vehicle insurance company.

409

6.3.5.: .Income & insurance companies: 1. Income & companies of health insurance: <20000 National ins.co New ind.ins.co Oriental United Icici lombard Bajaj Allianz TATA AIG Others Total 19(12.28) 13(11.94) 10(12.62) 8(6.14) 7(11.94) 5(7.16) 0(2.73) 26(23.19) 88 2000030000 9(14.09) 15(13.70) 12(14.48) 7(7.05) 14(13.70) 11(8.22) 4(3.13) 29(26.62) 101 3000040000 4(4.88) 4(4.75) 9(5.02) 1(2.44) 8(4.75) 1(2.85) 2(1.09) 6(9.22) 35 >40000 4(4.74) 3(4.61) 6(4.88) 2(2.37) 6(4.61) 4(2.77) 2(1.05) 7(8.96) 34 Total 36 35 37 18 35 21 8 68 258

Ho :there is no significant different between income level of people and selection of health insurance company. H1: there is significant different between income level of people and selection of health insurance company. Expected frequency of cell (1,1)= = 12.28

=3.68+1.84+.+0.43 =27.25 on 21 d.f and at 5% level of significance table value of cal < tab =32.67

Ho may be accepted there is no significant different between income level of people and selection of health insurance company.

410

2. Income & companies of fire insurance: <20000 National ins.co New ind.ins.co Oriental United Icici lombard Bajaj Allianz TATA AIG Others Total 0(0.30) 0(0.67) 0(0.24) 1(0.18) 1(0.24) 0(0) 0(0.12) 0(0.24) 2 2000030000 0(1.5) 1(3.33) 3(1.21) 0(0.91) 2(1.21) 0(0) 0(0.61) 4(1.21) 10 3000040000 1(0.30) 0(0.67) 0(0.24) 0(0.18) 1(0.24) 0(0) 0(0.12) 0(0.24) 2 >40000 4(2.88) 10(6.33) 1(2.30) 2(1.72) 0(2.30) 0(0) 2(1.13) 0(2.30) 19 Total 5 11 4 3 4 0 2 4 33

Ho : there is no significant different between income level of people and selection of fire insurance company. H1: there is significant different between income level of people and selection of fire insurance company. Expected frequency of cell (1,1)= = 0.30

=0.30+1.5+.+2.30 =35.65 on 21 d.f and at 5% level of significance table value of cal > tab =32.67

Ho may be rejected. there is significant different between income level of people and selection of fire insurance company.

411

3. Income & companies of theft insurance: <20000 National ins.co New ind.ins.co Oriental United Icici lombard Bajaj Allianz TATA AIG Others Total 1(0.95) 2(1.27) 1(1.90) 1(0.63) 1(0.95) 1(0.63) 0(0.32) 0(0.32) 7 2000030000 0(0.82) 1(1.09) 4(1.63) 0(0.54) 0(0.82) 0(0.54) 0(0.27) 1(0.27) 6 3000040000 0(0) 0(0) 0(0) 0(0) 0(0) 0(0) 0(0) 0(0) 0 >40000 2(1.23) 1(1.63) 1(2.45) 1(0.82) 2(1.23) 1(0.82) 1(0.41) 0(0.41) 9 Total 3 4 6 2 3 2 1 1 22

Ho : there is no significant different between income level of people and selection of theft insurance company. H1: there is significant different between income level of people and selection of theft insurance company. Expected frequency of cell (1,1)= = 0.95

=0+0.82+.+0.41 =11.99 on 21 d.f and at 5% level of significance table value of cal < tab =32.67

Ho may be accepted. there is no significant different between income level of people and selection of theft insurance company.

412

4. Income & companies of accident insurance: <20000 National ins.co New ind.ins.co Oriental United Icici lombard Bajaj Allianz TATA AIG Others Total 9(5.88) 3(4.35) 6(5.88) 7(4.09) 2(4.60) 2(3.84) 1(1.02) 3(3.33) 33 2000030000 8(10.34) 8(7.64) 11(10.34) 7(7.19) 9(8.09) 7(6.74) 1(1.80) 7(5.84) 58 3000040000 2(3.39) 2(2.50) 2(2.39) 1(2.36) 5(2.65) 4(2.21) 1(0.59) 2(1.91) 19 >40000 4(3.39) 4(2.30) 4(2.39) 1(2.36) 2(2.65) 2(2.21) 1(0.59) 1(0.91) 19 Total 23 17 23 16 18 15 4 13 129

Ho : there is no significant different between income level of people and selection of accident insurance company. H1: there is significant different between income level of people and selection of accident insurance company. Expected frequency of cell (1,1)= = 5.88

=1.66+0.53+.+0.43 =17.13 on 21 d.f and at 5% level of significance table value of cal < tab =32.67

Ho may be accepted. there is no significant different between income level of people and selection of accident insurance company.

413

5. Income & companies of vehicle insurance: <20000 National ins.co New ind.ins.co Oriental United Icici lombard Bajaj Allianz TATA AIG Others Total 10(4.69) 4(5.73) 4(4.43) 7(4.17) 6(7.88) 6(7.30) 2(2.87) 4(5.99) 43 2000030000 6(6.98) 10(8.53) 10(6.59) 2(6.21) 12(11.64) 9(10.86) 4(4.27) 11(8.92) 64 3000040000 0(2.95) 3(3.6) 2(2.78) 5(2.62) 7(4.91) 3(4.58) 4(1.8) 3(3.76) 27 >40000 2(3.38) 5(4.13) 1(3.19) 2(3) 5(5.64) 10(5.26) 1(2.67) 5(1.32) 31 Total 18 22 17 16 30 28 11 23 165

Ho : there is no significant different between income level of people and selection of vehicle insurance company. H1: there is significant different between income level of people and selection of vehicle insurance company. Expected frequency of cell (1,1)= = 4.69

=6.01+0.14+.+0.11 =34.15 on 21 d.f and at 5% level of significance table value of cal > tab =32.67

Ho may be rejected. there is significant different between income level of people and selection of vehicle insurance company.

414

CONCLUSION: From the overall report of comparative study of non life insurance industry, we as a report maker and researcher found that how non life insurance is important for people who living in different region. in our report we covered all non life insurance and companies of non life insurance both private and public sector. The special thing in our report is that we have covered overall non life insurance industry and on other hand we came to know about the awareness of people toward insurance and how people buy the different insurance. The report indicates that the growth of non life insurance industry is increasing drastically because of the increment in peoples income, change in life style, change in employment pattern ,change in corporate functions etc. most of the people are taking general insurance for the safe life. From the above we came to know that change in government policy , technology and other factors also affect to the non life insurance company. now days awareness of people for buying non life insurance is increase and majority of people taking insurance. In our report we covered all the benefit and limitation of non life insurance and we also covered major players of the general insurance company. The main reason to make this report is to knowing non life insurance focusing on health insurance and people awareness level, knowledge about insurance and buying behavior of people toward non life insurance. So, we come to know that most of the people buying general insurance and people aware about the general insurance. So non life insurance is mainly focus on health insurance.

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